Infrastructure sector to get a big financial push of Rs 60,000 crore

The Indian infrastructure sector is likely to receive a big push of additional Rs 50,000-60,000 crore midyear via secondary supplementary demand for grants. Roads, railways and rural electrification will benefit the most.

Talks of raking in huge amount of money is doing the rounds at the top levels of the government. The funds will be allocated as many departments are nearing to exhaust their amounts and will need more money so as to meet their targets. A final call on the allocation of funds will be taken in line with additional resources that the government is able to garner.

Genuine requirements based on the utilization record of ministries will also be taken into account. The government will also finish the promised Indian Institutes of Technology (IITs), Indian Institutes of Management (IIMs) and All India Institutes of Medical Science (AIIMS).

The ministry of finance, which needs to focus on fiscal deficit target of 3.5% of GDP, will be closely involved in taking a final call on the issue. It has begun to look at various options to make room for additional spending.

"Genuine fund requirements would be met. Actual utilisation and unspent balances released to various agencies would be taken into account before allocating any additional funds," a finance ministry official told ET.

"Ministries that are sitting on funds and have not been able to spend would have to forego to those that have been able to spend," he further added.

According to the policymakers, spending this aid will help in boosted growth and also aid timely completion of key government programmes.

Proposals have been invited by the finance ministry and will be considered for the second supplementary demand for grants that will be presented to Parliament in the winter session that's to start November 16.