India Index
India Index
February 1, 2025 at 06:25 PM
📢 Capital Expenditure (CapEx) Highlights in Budget 2025-26 The Government’s focus on infrastructure and development is reflected in the increased CapEx allocation. 📊 CapEx Allocation & Key Initiatives 📌 Total Capital Expenditure Allocation: ₹11.1 Lakh Crore 📈 Increased investment in infrastructure, highways, and urban development. 🔧 Aims to boost job creation and long-term economic growth. 📌 ₹1.5 Lakh Crore Interest-Free Loans to States for CapEx States get funds for infra projects but must implement reforms. Encourages states to invest in power, transport, and digital infra. 📌 Asset Monetization Plan 2025-30 (₹10 Lakh Crore) Government will lease assets to private firms to reinvest in new projects. Railways, highways, and airports to be monetized to fund fresh infra development. 📌 Urban Challenge Fund (₹1 Lakh Crore) for Smart Cities & Urban Development Focus on city redevelopment, water & sanitation, and transport infra. 25% of project cost to be covered by the fund, while 50% will come from bonds, banks, and PPPs. 📌 Jal Jeevan Mission Extended Until 2028 15 crore households already connected with potable water. Budget allocated to ensure 100% tap water coverage in rural India. 📌 Warehousing & Air Cargo Infrastructure Boost Govt to develop high-value perishable cargo warehousing. Improved customs processing and air cargo facilities. 📌 Public-Private Partnership (PPP) Push in Infrastructure All infrastructure ministries must release a 3-year pipeline of PPP projects. States can seek support from the India Infrastructure Project Development Fund (IIPDF) for project preparation. 📌 National Manufacturing Mission A framework to support MSMEs & large industries in boosting domestic manufacturing. Integration with supply chains & policy incentives for local production. 📊 Sector-Wise Breakdown of CapEx Impact 🚧 Roads & Highways Significant investment in expanding highway connectivity & expressways. Increased rural road development under PMGSY (Pradhan Mantri Gram Sadak Yojana). 🏗 Real Estate & Urban Infrastructure ₹1 Lakh Crore Urban Challenge Fund for redevelopment. Govt will back 25% of project costs, with private sector expected to invest 50%. Push for affordable housing and smart cities. 🔋 Energy & Power Infrastructure Investments in power distribution and renewable energy. Incentives for states to reform power distribution policies. Nuclear Energy Mission & EV battery manufacturing incentives. 🚆 Railways & Metro Expansion Railway electrification and new high-speed corridors. Metro rail expansion in tier-2 cities. 📡 Digital & Telecom Infra Expansion of 5G and rural broadband infrastructure. Public-private partnerships to expand fiber optic networks.

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