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New Government Expected To Boost Infrastructure Spending

By akansha, Section Infrastructure
Posted on Tue May 19, 2009 at 10:10:11 PM EST

The infrastructure sector in the country is expected to get a booster shot in the form of support to new building and construction projects once the new government assumes office.

With a near majority in the new House, the United Progressive Alliance government led by Manmohan Singh is expected to announce big-budget projects in the infrastructure sector, including shipping, roads, railways and building construction.

The planning commission is reported to have already prepared the blueprint for four new rail freight corridors, in addition to the Ludhiana-Kolkata (eastern corridor) and Delhi-Mumbai (western corridor) projects already being implemented.

The plan panel has now prepared blueprints for dedicated freight corridors in the Kolkata-Mumbai, Delhi-Chennai, Kharagpur-Vijayawada and Chennai-Goa sectors, Anwarul Hoda, member of the outgoing planning commission, said.

"The commission is ready with the plan for four dedicated freight corridors Kolkata-Mumbai, Delhi-Chennai, Kharagpur-Vijayawada and Chennai-Goa," he said.

The eastern and western rail freight corridor projects are currently being implemented by state-run Dedicated Railway Freight Corridor Corporation of India Limited.

Source: domain-b.com New government expected to boost infrastructure spending news

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The two projects, having a total length of around 2,762 km, is expected to involve investment of up to Rs37,000 crore.

The four new projects are proposed to be implemented during the second term of the UPA government.

The realty sector, which has been facing a slump-like situation in the past few years, also expects the new government to provide incentives for home buying in addition to infrastructure contracts.

Realtors have been facing a severe demand crunch over the last 10 months as the high prices deterred home buyers even as the global financial crisis squeezed liquidity.

Property firms expect the new government to ease lending rules and announce tax incentives for investment in property in order to make real estate investment an attractive proposition.

A revival in real estate and infrastructure sector is also expected to boost corporate spending is still some while away, real estate developers and infrastructure firms said.

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