50-year interest free loans for states’ capex
As part of the 3rd engine of investment in economy, Minister for Finance and Corporate Affairs Nirmala Sitharaman has proposed multi-sectoral reforms encompassing Public Private Partnerships support to States in the ‘Asset Monetisation Plan 2025-2030’ for the mining and domestic manufacturing sectors.
The proposal is in the Union Budget 2025-26 presented in Parliament on 1 Feb.
Public Private Partnership in Infrastructure
Sitharaman proposed that each infrastructure-related ministry will come up with a 3-year pipeline of projects that can be implemented in PPP mode, and States will also be encouraged to initiate and seek support from the India Infrastructure Project Development Fund (IIPDF) scheme to prepare PPP proposals https://www.commerce.gov.in/.
Support to States for Infrastructure
The Minister proposed an outlay of Rs.1.5 lakh crore for the 50-year interest free loans to states for capital expenditure and incentives for reforms https://www.investindia.gov.in/.
Asset Monetisation Plan 2025-30
Building on the success of the first Asset Monetisation Plan announced in 2021, Sitharaman proposed to launch the Second Plan for 2025-30 to plough back capital of Rs.10 lakh crore in new projects with fine-tuning of the regulatory and fiscal measures to support the Plan.
Mining Sector Reforms
The Minister proposed mining sector reforms, including those for minor minerals, through sharing of best practices and institution of a State Mining Index.
PM Gati Shakti Data for Private Sector
Sitharaman proposed to provide access to relevant data and maps from the PM Gati Shakti portal for furthering PPPs and assisting the private sector in project planning.
Support to Domestic Manufacturing and Value addition Critical Minerals
The Minister proposed to fully exempt cobalt powder and waste, the scrap of lithium-ion battery, Lead, Zinc and 12 more critical minerals to secure their availability for manufacturing in India and promote more jobs for India’s youth. Fiinews.com
