Comprehensive plan to augment investment in Nuclear Power generation

Presenting the General Budget 2016-17 in Lok Sabha today, the Union Finance Minister Shri Arun Jaitley said that Oil & Gas discovery and exploration of Gas in difficult areas will be incentivized by giving them calibrated marketing freedom. This is a major reform measure. As part of our drive towards self-sufficiency, the Government is considering to incentivize gas production from deep-water, ultra deep-water and high pressure-high temperature areas, which are presently not exploited on account of higher cost and higher risks. In the power sector, the Government is drawing-up a comprehensive plan, spanning next 15 to 20 years, to augment the investment in nuclear power generation. Budgetary allocation up to ₹ 3000 crore per annum, together with public sector investments, will be leveraged to facilitate the required investment for this purpose.

Shri Jaitley said that government will permit mobilization of additional finances to the extent of ₹ 31,300 crore by NHAI, PFC, REC, IREDA, NABARD and Inland Water Authority through raising of Bonds during 2016-17. In the other segments of the infrastructure sector, the Government has achieved the highest coal production growth in over two decades, highest ever capacity addition in generation, highest ever increases in transmission lines and in distribution of LED bulbs

Marketing freedom for oil and gas to incentivize production in high-risk areas, enabling bond financing for infrastructure expansion. The Government will grant calibrated marketing freedom to incentivize oil and gas production in high-cost, high-risk areas including deep-water and HPHT fields, while pursuing a 15-20 year plan to increase nuclear power investment supported by annual budgetary allocations and leveraged public sector funding; additional infrastructure finance will be mobilized through bond issuances by public entities.