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Development Programs in Budget 2009 - 2010

Even as the Union Budget failed to cheer the markets and experts alike, Finance Minister
Pranab Mukherjee did well to focus on infrastructure. Bottlenecks for speedy
implementation of infrastructure projects will be removed to ensure that sufficient funds
are made available for this sector. Infrastructure sector proposals will bring in funds to
financial national projects such as ports, highways etc. These proposals are expected to help
these projects achieve timely financial closure. Experts say they will be beneficial for urban
India, and water supply and irrigation projects as well. The Government proposes to develop
a blueprint for long distance gas highway leading to a National Gas Grid. This would make
easy transportation of gas across the country.

Infrastructure Development

• IIFCL (India Infrastructure Finance Company Limited) to develop a Takeout financing

scheme in consultation with banks to facilitate incremental lending to infrastructure
sector.
• IIFCL to refinance 60% of commercial bank loans for PPP (Public-Private Partnership)
projects in critical sectors over the next fifteen to eighteen months.
• IIFCL and Banks are now in a position to support projects involving total investment
of Rs.1,00,000 crore.

Highway and Railways

• Allocation to National Highways Authority of India (NHAI) for the National Highway
Development Programme (NHDP) increased by 23 per cent over Budget Estimate
2008-09 in B.E. 2009-10
• Allocation for Railways increased from Rs.10,800 crore in Interim B.E. 2009-10 to
Rs.15,800 crore in B.E. 2009-10.

Urban Infrastructure

• Allocation under Jawaharlal Nehru National Urban Renewal Mission (JNNURM)

stepped up by 87 per cent to Rs.12,887 crore in B.E. 2009-10
• Allocation for housing and provision of basic amenities to urban poor enhanced to
Rs.3,973 crore in B.E. 2009-10.
• A new scheme, Rajiv Awas Yojana will be introduced with the aim to make the
country slum free in the next five years.
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Brihan Mumbai Storm Water Drainage Project (BRIMSTOWA)

• Provision for the project BRIMSTOWA initiated in 2007 and funded through Central
Assistance to address the problem of flooding in Mumbai, enhanced from Rs.200
crore in Interim B.E. 2009-10 to Rs.500 crore in B.E. 2009-10 to speed up completion
of the project.

Bharat Nirman

• Allocation for Bharat Nirman increased by 45 per cent in 2009-10 over B.E. 2008-09.
• Allocations under Pradhan Mantri Gram Sadak Yojana (PMGSY) increased by 59 per
cent over B.E. 2008-09 to Rs.12,000 crore in B.E. 2009-10.
• Under Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), allocation increased by
27 per cent to Rs.7,000 crore.
• Allocation under Indira Awaas Yojana (IAY) increased by 63 per cent to Rs.8,800 crore
in B.E. 2009-10.
• Allocation of Rs.2,000 crore made for Rural Housing Fund (RHF) in National Housing
Bank (NHB) to boost the resource base of NHB for refinance operations in rural
housing sector.

Other Schemes

Apart from the above mentioned schemes there are some other schemes aimed to increase
the education, female literacy, rural development, employment, etc. of the country. They
are;

• A new scheme, Pradhan Mantri Adarsh Gram Yojana (PMAGY) will be launched this
year on a pilot basis for integrated development of 1000 villages with above 50 per
cent Scheduled Caste population.
• Stress will be laid on the formation of women Self Help Groups (SHGs) Reach of Self
Help Groups will be widened to enroll at least 50 per cent of all rural women as
members of SHGs over the next five years.
• Capital subsidy is proposed to provide interest subsidy to poor households for loans
upto Rs. 1 lakh from banks.
• A National Mission for Female Literacy will be launched with the aim to reduce the
current level of female literacy by half in three years.
• The Swarna Jayanti Gram Swarozgar Yojana (SGSY) is to be restructured as National
Rural Livelihood Mission to make it universal in application, focused in approach and
time bound, for poverty eradication by 2014-15.
• The Budget commits that all Integrated Child Development Services will be extended
to every child under the age of six by March, 2012
• The allocation for the Ministry of Minority Affairs has been increased by 74 per cent.
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• Budget has made allocations for the new schemes of National Fellowship for
Students from minority community.
• A new project is being launched for modernization of the Employment Exchanges to
enable job seekers to register on-line from anywhere and approach any employment
exchange.
• The Government proposes to bring all BPL families under the Rashtriya Swasthya
Bima Yojana (RSBY) The allocation for the scheme is being increased by 40 per cent.

For Further Details kindly Contect :

Thanks and Regards,

Kirang Gandhi

Corporate Financial Planner

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