Govt on spending spree ahead of elections

New plans include overhaul of rail signalling, phase-2 of Bharatmala

- Rhik Kundu & Subhash Narayan

The Union government, which unveiled ₹1.18 lakh crore worth of programmes spanning mobility to digital sectors, plans to make additional such mega announcements during the festive season until the year-end, four people with direct knowledge of the matter said.

The proposed announcements may include a ₹1 lakh crore mission mode project to modernize the railway signalling system, a ₹3 lakh crore Bharatmala Phase-2 programme to boost connectivity to infrastructure projects such as multimodal logistics parks and ongoing expressways, a ₹5,000 crore incentive package to encourage the construction of vessels and ships to develop a blue economy, and a viability gap funding (VGF) scheme for coal gasification. A few other financial support initiatives targeting the agricultural and MSME sectors may also be announced.

Ministries, particularly those overseeing infrastructure, social, and farming sectors, have been asked to expedite work on any new policies or programmes being formulated and bring them promptly for cabinet approval and potential launch this year so that they could be launched this year itself and some funding is allocated to them, according to one of the people cited above.

In addition, infrastructure ministries have been instructed to conclude capital expenditure for FY24 by December and prepare to take up new projects early next year, the person said, requesting anonymity.