Key Highlights of Budget 2022 for Infrastructure and Real Estate sector.
Infrastructure, digital India get the biggest boost in the India Union Budget 2022. While presenting the Budget, finance minister Nirmala Sitharaman announced that the country’s economic growth is expected to be at around 9.2 percent in the current financial year.
Other areas on which the budget was focused was the Creation of jobs, a push towards a greener economy, a push for digital education, a focus on mental health wellbeing, preparations for new-age technologies such as blockchain and 5G services, and a boost for made-in-India initiatives.
This budget has a Significant focus on the logistics, transport, and infra sector.
Here are key highlights from Budget 2022 from the infrastructure and real estate sector :-
- The scope of PM GatiShakti National Master Plan will encompass the seven engines for economic transformation, seamless multimodal connectivity and logistics efficiency.
- Contracts to be awarded through PPP mode in 2022-23 for implementation of Multimodal Logistics Parks at four locations.
- 100 PM GatiShakti Cargo terminals for multimodal logistics to be developed during the next three years.
- Pradhan Mantri Gatishakti Masterplan for expressways will be formulated in the next financial year.
- National highway network to be expanded by 25,000 km during the financial year (FY) 2022-23.
- One Station One Product concept to help local businesses & supply chains. 400 new generation Vande Bharat Trains to be manufactured during the next three years.
- Rs. 48,000 crore allocated for completion of 80 lakh houses in 2022-23 under PM Awas Yojana.
- Modernization of building by laws, Town Planning Schemes (TPS), and Transit Oriented Development (TOD) will be implemented.
- Data Centres and Energy Storage Systems to be given infrastructure status.
- Civil infrastructure around mass transit systems and railway stations across States to be re-oriented and standardised.
- SEZ Act to be replaced by new legislation to enable states to become partners in ‘Development of Enterprise and Service Hubs’.
- 5G spectrum auctions in FY23 and PLI for 5G technology manufacturing ecosystem.
- New scheme PM-DevINE launched to fund infrastructure and social development projects in the North-East.
- Battery swapping policy to be brought out for setting up charging stations at scale in urban areas.
- Additional allocation of Rs. 19,500 crore for Production Linked Incentive for manufacture of high efficiency solar modules to meet the goal of 280 GW of installed solar power by 2030.
The Government has provided much-needed capital expenditure and importance to the country’s transportation and logistic infrastructure, as it is a key for growth. This budget will create a huge opportunity in industrial real estate, as it will boost the logistics and warehousing sector.
