Budget Boosts Infrastructure: Public-Private Partnerships & Investment

New Delhi, Feb 4 (PTI) The budget announcements aim to foster public-private cooperation and are expected to attract global investments in the infrastructure sector, industry players and experts said.

In her budget speech on Saturday, Finance Minister Nirmala Sitharaman made several announcements to give a push to various sectors, including infrastructure.

She said Rs 1.5 lakh crore will be provided towards 50-year interest free loans to states, for infrastructure development, and an asset monetisation plan will be launched for 2025-30 period to infuse Rs 10 lakh crore capital in new projects, besides an outlay of Rs 500 crore for setting up a centre of excellence in artificial intelligence for education.

Rasmi Ranjan Ray, SUEZ India CEO said the Budget has set the stage for transformative, infrastructure-led growth with a record allocation of Rs 1.5 lakh crore in the form of 50-year interest-free loans to states for infrastructure projects.

Virendra D Mhaiskar, Chairman & Managing Director, IRB Infrastructure Developers said asset monetization target of Rs 10 lakh crore as announced in Budget FY26 will make significant opportunities available for the private sector to deploy resources.

"The continuation of tax exemption to sovereign wealth funds & pension funds sends right message to global money that they are welcome to participate in the Indian growth story," he added.

BK Goenka, Chairman of Welspun World said the budget sets India on a stronger medium-term growth trajectory by addressing critical issues to further enhance ease of doing business in the country – be it with regards to import and use of capital goods, streamlining duties and tariffs, support to MSMEs.

Kavita Shirvaikar, Managing Director of Patel Engineering said the government has placed strong focus on the Public-Private Partnership (PPP) model alongwith other areas, in the Budget for 2025-26.

With these initiatives, the PPP model is well positioned to take a significant lead in the fast-tracking of India's infrastructure development, foster cooperation between the public and private sectors, and drive sustainable economic growth, she said.

Indrajit Mookerjee, Executive Director & Vice Chairman, Texmaco, said the increased capital outlay for the railway will play a pivotal step toward enhancing connectivity, freight efficiency, and multimodal logistics—key drivers of economic growth.

Mohammad Athar – Partner and Leader Capital Projects and Infrastructure Development, PwC India said the government has announced a record capital outlay of Rs 11.21 lakh crore for infrastructure development in the upcoming fiscal year. The tourism infrastructure which will be developed in 50 destinations will act as enablers of inclusive development and promote growth in new regions, along with generating employment in sectors like tourism.

Gurmit Singh Arora ,National President, Indian Plumbing Association said the plumbing sector has got a substantial boost with extension of potable water supply connectivity to a further 100 crore households under the extended Jal Jeevan Mission.

The growth of this segment is linked with the growth of infrastructure in the country. Increased competitiveness in infrastructure will necessitate positively modernized plumbing practices throughout the industry, he said.

Vishal Kotecha, Director & Head – Infrastructure Group, India Ratings & Research said, "although the government's capital expenditure allocation has increased moderately, the emphasis is likely to shift towards effective implementation through PPP model. This is evident from initiatives aimed at creating a 3-year pipeline of projects, annual monetisation plan, access to PM Gati Shakti Data ensuring a steady stream of investments and timely execution."

Rizwan Soomar, Chief Executive Officer and Managing Director, DP World North Africa, and India Subcontinent said the Bharat Trade Net is aimed at simplifying trade documentation and will help optimize supply chains through data-driven decision-making.

The Rs 25,000 crore Maritime Development Fund will enhance financial stability and competitiveness for indigenous shipbuilding and other infrastructure projects encouraging private investments.