Additional infra spending of Rs 31,300 cr gets nod

The funds would be raised by PFC, IREDA, IWAI and Nabard

The Cabinet on Wednesday gave its approval to raise Rs 31,300 crore in 2016-17, to augment infrastructure spending, and to service the principal and interest against the extra budgetary resources (EBR) of Rs 16,300 crore by the government.

The funds would be raised by Power Finance Corporation (PFC), Indian Renewable Energy Development Agency (IREDA), Inland Waterways Authority of India (IWAI), and National Bank for Agriculture and Rural Development (Nabard).

The principal and the interest in respect of the EBR of Rs 16,300 crore to be raised by PFC, IREDA, IWAI, and NABARD would be financed by the government by making suitable budgetary provisions in the demand of the respective ministries and departments.

In a statement, the government said this would supplement the efforts to improve infrastructure spending and improve the revenue-capital mix of the expenditure for a more sustainable growth.

“This decision is in line with the announcement made in the Budget Speech 2016-17 to augment infrastructure spending further. The government will permit mobilisation of additional finances to the extent of Rs 31,300 crore by NHAI, PFC, REC, IREDA, NABARD and Inland Water Authority through raising of bonds during 2016-17,” added the statement.

OTHER CABINET DECISIONS

• Rs 1,250-cr subsidy support to BSNL for deficit incurred by it in operating rural wire-line connections installed prior to April 1, 2002
  

 

Viability gap funding for Jagdishpur-Haldia pipeline project; Rs 12,940-crore natural gas pipeline to cover 2,539 km across five states
 

Stockholding limit on pulses, edible oils and oilseeds extended by a year till September 30, to check hoarding and control price rise; limits were to expire this month
 

A national council under the Prime Minister to administer National Mission for Clean Ganga; to replace National Ganga River Basin Authority
 

Signing and ratification of an agreement with Samoa for exchange of information to curb tax evasion