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Budget 2025-26 Infrastructure, PPP and Asset Monetisation Plan

3 February 20251 min read
ECONOMYBudget 2025-26Infrastructure,PPP and AssetMonetisation Plan3 February 2025safalsetu.com

Why in the news

The 2025-26 Budget set out measures on infrastructure, states, asset monetisation, mining and domestic manufacturing.

Key facts

  • PPP: each infrastructure ministry to draw up a three-year project pipeline.
  • State loans: incentives linked to capital spending and reforms.
  • Mining: reforms for minor minerals and a State Mining Index to rate state efficiency.
  • PM Gati Shakti: maps and data to be shared with private firms for planning projects.
  • Duty exemption: full relief on cobalt powder and waste, lithium-ion battery scrap, lead, zinc and 12 other critical minerals.

Significance

  • Monetisation frees capital for fresh projects.
  • Duty relief secures raw material for factories and creates jobs for youth.

Exam angle

  • Loan tenure: 50 years; fund for PPP help: India Infrastructure Project Development Fund.

Test yourself

1. Under Budget 2025-26, the interest-free loans for infrastructure support to states have what tenure?

The notes state interest-free loans for 50 years worth ₹1.5 lakh crore.

2. What is the size of the Asset Monetization Plan for 2025-30 announced in Budget 2025-26?

A new ₹10 lakh crore plan was launched, building on the 2021 initiative.

3. Which fund were states encouraged to approach for developing PPP proposals in Budget 2025-26?

States were asked to approach the India Infrastructure Project Development Fund (IIPDF).