100 more Airports to be developed by 2024 to support UDAAN Scheme

Union budget proposes ₹ 22000 Crore for Power and Renewable Energy sector in Current FY

National Gas Grid to be expanded from the present 16200 km to 27000 km

Government to consider corporatizing at least one major port and its listing on stock exchanges

Union Minister for Finance & Corporate Affairs, Smt Nirmala Sitharaman, while presenting the Union Budget 2020-21, in Parliament today, said that infrastructure was crucial to the theme of “Economic development” and hence the Budget which is dedicated to provide “Ease of Living” to all citizen. 

Emphasising need for efficiency of India Sea Ports and use of technology to improve their performance, Smt Nirmala Sitharaman, said “The government would consider corporatizing at least one major port and subsequently its listing on the stock exchanges.” 

Speaking about Inland Waterways, the Finance Minister also announced that the “Jal Vikas Marg” on National Waterway-1 will be completed and further the 890 Km Dhubri-Sadiya connectivity will be done by 2022”. 

Smt Sitharaman further said that Plans are afoot on “Arth Ganga”- PM’s vision to energise economic activity along the river banks. In order to boost the transport Infrastructure in the country the Union Budget has provided for about ₹ 1.70 Lakh Crore.  

Impetus to Civil Aviation Sector 

The Finance Minister also announced that 100 more airports would be developed by 2024 to support Udaan scheme. She also remarked in her Budget presentation that India’s Air traffic has grown rapidly as compared to global average and the Air fleet number was expected to go up from the present 600 to 1200 during this time. 

In the direction of doubling farmers’ income by 2022, among other measures, the Finance Minister also announced launch of “Krishi Udaan” by the Ministry of Civil aviation on International & National routes. This is aimed to help improve value realisation especially in North-East and Tribal districts. 

Power and Renewable Energy 

The Union Finance Minister, also proposed an allocation of ₹ 22000 crore for Power and Renewable Energy sector in 2020-21. Finance minister urged all States and Union Territories to replace conventional meters by prepaid “Smart Meters” in the next 3 years and measures to reform DISCOMs.

 Further, the Finance Minister proposed in the Budget that national gas grid would be expanded from the present 16200 km to 27000 km with further reforms to be undertaken to facilitate transparent price discovery and ease of transactions. 

The Finance Minister also proposed to extend corporate tax rate of 15% to new domestic companies engaged in the generation of electricity.

Aviation infrastructure expansion to strengthen regional connectivity schemes and enable agricultural air cargo and transport reforms. The Budget advances aviation-led regional connectivity by expanding airport capacity to support the Udaan scheme and launching Krishi Udaan to improve agricultural air cargo access, while allocating funds for transport infrastructure and considering corporatisation and listing of a major port. Concurrently, it allocates resources to Power and Renewable Energy, mandates replacement of conventional meters with prepaid smart meters within a set period, proposes DISCOM reforms, plans expansion of the national gas grid, and extends a reduced corporate tax rate to new domestic electricity generators.