Rs 12.2 Lakh Crore Infrastructure Push For Tier 2 Cities
- Rs 12.2 lakh crore capex plan targets Tier 2 and 3 cities
- Rs 12.2 lakh crore infrastructure push backs logistics and waterways
Hyderabad: Finance Minister Nirmala Sitharaman announced a major infrastructure drive in the Union Budget 2026-27, with a public capital expenditure outlay of Rs 12.2 lakh crore. The focus remains on Tier 2 and Tier 3 cities, which the government sees as emerging growth centres. The push aims to support economic growth and ensure balanced regional development across the country.
The finance minister said the government will continue to invest heavily in cities with populations above five lakh. These cities play a key role in easing pressure on major metros. Therefore, the strategy seeks to unlock economic potential in smaller urban centres while improving connectivity and jobs. The announcement underlined the government’s intent to spread development beyond large cities.
Public capital expenditure for 2026-27 stands higher than the Rs 11.2 lakh crore allocated in the previous budget. Meanwhile, the minister noted that public capex has risen sharply since 2014-15, when it was around Rs 2 lakh crore. She stressed that sustained investment remains central to building assets that support productivity, connectivity, and employment.
To attract private players, the budget proposed an Infrastructure Risk Guarantee Fund. The minister said the fund will offer partial credit guarantees to lenders. These guarantees will be calibrated prudently. Therefore, the move aims to reduce risks during project development and construction. By doing so, the government expects better participation from developers and financial institutions.
The budget also announced a new dedicated freight corridor from Dankuni in the east to Surat in the west. This east west corridor will support sustainable cargo movement. It will also reduce logistics costs and ease pressure on roads. Later, it is expected to improve freight efficiency across major industrial regions.
Inland waterways also received strong attention. The government plans to operationalise 20 new national waterways over five years, starting with National Waterway 5 in Odisha. This route will link Talcher and Angul with industrial hubs such as Kalinganagar and ports including Paradip and Dhamra. Meanwhile, the budget proposed ship repair facilities in Varanasi and Patna to support inland vessels and create skilled jobs.
These measures align with the vision of Viksit Bharat through better connectivity and risk mitigation. (Maxim News)
Now you can get the latest stories from Indtoday on Telegram every day. Click the link to subscribe. Click to follow Indtoday’s Facebook page, Twitter, and Instagram. For all the latest Hyderabad News updates and Follow us on GoogleNews
