Will invest in people, economy, innovation

Minister announces setting up multiple schemes to boost innovation through PPP models and key industry reforms

- Rajeev Jayaswal

NEW DELHI: Investment is one of the four "powerful engines" of growth, and the budget aims to invigorate private sector investments, finance minister Nirmala Sitharaman said on Saturday while outlining the government's plan to invest in people, economy and innovation.

As an engine of economic development, Sitharaman proposed multisectoral reforms encompassing public-private partnerships (PPP), support to states, an asset monetisation plan for 2025-2030, mining sector development, and support to domestic manufacturing.

The plan she unveiled was that each infrastructure-related ministry will come up with a three-year pipeline of projects that can be implemented in PPP mode, and states will be encouraged to initiate and seek support from the India Infrastructure Project Development Fund (IIPDF) scheme to prepare PPP proposals.

Sitharaman also announced setting up of an Urban Challenge Fund of ₹1 lakh crore to implement the proposals for cities as growth hubs, creative redevelopment of cities, and water & sanitation announced in the July 2024 budget. "This fund will finance up to 25% of the cost of bankable projects with a stipulation that at least 50% of the cost is funded from bonds, bank loans, and PPPs. An allocation of ₹10,000 crore is proposed for 2025-26," she said.

In order to help the private sector in implementing PPP projects, the finance minister offered PM Gati Shakti data to them. "For furthering PPPs and assisting the private sector in project planning, access to relevant data and maps from the PM Gati Shakti portal will be provided," she said.