Jal nal, roads get record outlays: Surety bonds replace bank guarantees, free up capital
To boost private sector capex in infra sector, the Budget has announced to provide an alternative to the guideline of seeking bank guarantees for infrastructure projects and replacing them with surety bonds. A broad-based increase in capital spending targets across key sectors including roads, railways, telecommunications and rural infra projects has also been unveiled.
Ministry of Road Transport and Highways received the highest boost in its allocation which has jumped to Rs 1.99 lakh crore, against Rs 1.18 lakh crore last year. Ministry of Railways has been allocated Rs 1.40 lakh crore, up from Rs 1.10 lakh crore budgeted last year, the Ministry of Rural Development gets Rs 1.38 lakh crore, compared with Rs 1.33 lakh crore last year.
