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Explore PPP mode for viable projects, Sitharaman tells ministries

Sitharaman says enhanced CAPEX will play a critical role in revitalising post-pandemic economy. Budget for Financial Year 2021-22 provided a capital outlay of Rs 5.54 lakh crore but these efforts must be complemented by PSEs, says FM

twitter-logoBusinessToday.In | June 11, 2021 | Updated 20:33 IST
Explore PPP mode for viable projects, Sitharaman tells ministries
Finance Minister Nirmala Sitharaman

Finance Minister Nirmala Sitharaman, in her meeting on infrastructure road map on Friday, directed ministries to front-load capital expenditure and achieve more than their CAPEX targets. She also asked ministries and CPSEs to ensure clearance of MSMEs' dues at the earliest, and told them to explore Public Private Partnership (PPP) mode for viable projects.

The FM said enhanced CAPEX will play a critical role in revitalising the post-pandemic economy. The Budget for Financial Year 2021-22 provided a capital outlay of Rs 5.54 lakh crore, a sharp increase of 34.5per cent over the Budget Estimate of 2020-21, she said, adding that these efforts must be complemented by the Public Sector Enterprises.

She said infrastructure expenditure is not just the Centre's budgetary expenditure on infrastructure and also includes infrastructure spending by states and private sector, and government expenditure through extra-budgetary resources.

She said ministries must work on getting projects funded through innovative structuring and financing, and provide all support to the private sector for enhancing infrastructure spending.

Also read: 'Is the GST Council heartless?': Here's what FM Sitharaman has to say

The ministries also need to explore Public Private Partnership (PPP) mode for viable projects, and clear Micro, Small & Medium Enterprises (MSME) dues at the earliest, she said.

The DoT has also been asked to expedite the important projects that bring the benefit of high level data connectivity. The MoRTH was especially asked to explore the possibility of enhancing connectivity in hilly regions and to expedite the implementation of Vehicle Scrapping Facility. She also asked the department of atomic energy to ensure timely achievement of initiatives announced under the Atma Nirbhar Bharat Package (ANBP).

Also read: Exclusive: GoM for retaining 5% tax on Covid jabs; tax cut on PPEs, ventilators, sanitisers

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