Road Min's allocation rises 48% to Rs 42,912 cr for FY16

The highways sector, which has been one of the focus areas for the government, saw a 48 per cent increase in outlay at Rs 42,913 crore in the Union Budget 2015-16 presented today.
"It is no secret that the major slippage in the last decade has been on infrastructure front. Our infrastructure does not match our growth ambitions. I have therefore increased outlays on both the roads and the gross budgetary support to the railways by Rs 14,031 crore and Rs 10,050 crore, respectively," Finance Minister Arun Jaitley said in his maiden full-year budget today.
The planned allocation for the Ministry of Road and Highways has increased significantly to Rs 42,913 crore for the year 2015-16.

The planned allocation for the sector in 2014-15 stood at Rs 28,881 crore.
For 2015-16, the increased provisions have been made for the development of national highways, including projects relating to expressways and six-laning of crowded stretches of Golden Quadrilateral and two-laning of highways works under National Highways Development Project.
Besides special programme for the development of road connectivity in naxal-affected areas, development of Vijaywada-Ranchi road and providing last mile connectivity, were also taken into consideration.

Jaitley said permitting tax-free infrastructure bonds for projects in rail, road and irrigation sectors is also on the anvil.
For the roads sector, Jaitley announced connecting each of the 1,78,000 unconnected habitations by all weather roads.

"This will require completing 1,00,000 km of roads currently under construction plus sanctioning and building another 1,00,000 km," he said.
Jaitley also said that there is a proposal for conversion of existing excise duty on petrol and diesel to the extent of Rs 4 per litre into Road Cess to fund investment in roads and other infrastructure.
Besides, an additional Rs 40,000 crore will be made available through this measure for these sectors, he said.