Budget 2025-26 to transform India's infrastructure, says IIFCL MD

With this year's budget, it is evident that the government has embarked on an ambitious journey to revolutionise the country's infrastructure landscape, India Infrastructure Finance Company Limited (IIFCL) Managing Director PR Jaishankar said on Sunday.

Strategic investments and policy reforms outlined in the budget reflect a strong commitment to making India a Viksit Bharat by 2047, ensuring sustained economic growth, global competitiveness, and enhanced quality of life for all citizens, he said while outlining some of the major announcements in the Budget.

The government has announced various measures, including an Asset Monetization Plan (2025-2030), aimed at recycling Rs 10 lakh crore into new infrastructure developments, backed by regulatory and fiscal reforms.

The Budget also announced a plan to leverage PM Gati Shakti to modernise land records, urban planning, and infrastructure design, enhancing project execution efficiency, he told PTI.

To attract long-term capital for infrastructure, he said, the government has extended the investment window for Sovereign Wealth Funds and Pension Funds by five more years, ensuring sustained foreign investment in India's critical development projects.

Recognising the pivotal role of cities in driving economic growth, he said, the government has launched a Rs 1 lakh crore Urban Challenge Fund to transform urban centres into vibrant growth hubs.

This initiative will support creative redevelopment, enhance water and sanitation infrastructure, and finance up to 25 per cent of bankable projects, with at least 50 per cent of funding sourced from bonds, bank loans, or PPPs, he said.

An initial Rs 10,000 crore has been allocated for FY 2025-26 to kickstart this initiative.

To propel India's transition towards clean energy, the Nuclear Energy Mission targets 100 GW of nuclear power by 2047, he said amendments to the Atomic Energy Act and Civil Liability for Nuclear Damage Act have been proposed to enable greater private sector participation while a dedicated Rs 20,000 crore R&D initiative for Small Modular Reactors (SMRs) aims to have five indigenous SMRs operational by 2033.

There has been a consistent focus on the infrastructure sector, be it by way of increased capex or reformatory measures to make the investment landscape more conducive for all the stakeholders and to attract investments in the sector from diversified sources, he added.