Union Budget 2013-14: Allocations of Funds to Infrastructure and Energy Sector

The Union Finance Minister announced different proposals for Infrastructure and Energy Sector in India while tabling the Union Budget 2013-14 in the Lok Sabha on 28 February 2013. The proposals as announced by the Union Finance Minister are as follows:

Power

• Investment allowance of 15% for investment in plant & machinery
• 30% increase in plan expense
• CCI to take up decisions on more Power projects
• Power transmission system from Srinagar to Leh at an expense of INR 228 Crore in 2013-14

Oil and Gas
 
• Natural gas pricing policy to be reviewed
• Move to revenue-sharing from profit-sharing policy in oil and gas sector
• The oil and gas exploration policy will be reviewed to move from profit sharing to revenue sharing contracts
• NELP blocks that were awarded but are stalled will be cleared

Coal

• Proposal for Public-private partnership (PPP) policy framework, with CIL as one of the partners, in order to increase the production of coal for supply to power producers and other consumers.
• More focus on coal import, coal blending and price pooling of coal in short to medium term.

Infrastructure
 
• Road Regulator to be introduced
• Over 3000 km road projects across Maharashtra, Gujarat, MP to be awarded in 6 months time in 2013-2014
• 2 new major ports announced in AP and WB.
• Infrastructure Debt funding - 4 of these to be in place to extend funding at lesser rate
• Tax-free infrastructure bonds of Rs 50,000 crore to be issued

Renewable Energy
• GBI re-introduced in Wind Sector with allocation of 800 cr.
• Low interest bearing funds from the National Clean Energy Fund (NCEF) to IREDA to on-lend to viable renewable energy projects. The scheme will have a life span of 5 years.