The Union Budget for 2011-12 earmarked Rs.2,14,000 crores for infrastructure sector, which is 23.3% higher than current year and shares 48.5% of the Gross Budgetary support to plan expenditure.
The Finance Minister, stated that in order to give a boost to infrastructure development in railways, ports, housing and highways development, it has been proposed to allow tax-free bonds of Rs.30,000 crores to be issued by various government undertakings in the year 2011-12. This includes Indian Railway Finance Corporation Rs.10,000 crores National Highway Authority of India Rs.10,000 crores HUDCO Rs.5000 crores and Ports Rs.5000 crores.
The budget expects India Infrastructure Finance Company Limited (IIFCL) to achieve a cumulative disbursement of Rs.25,000 crore by March 31, 2012
