New Delhi, Feb 1 (NationPress) Finance Minister Nirmala Sitharaman unveiled a robust boost for infrastructure advancement during her Union Budget address for the fiscal year 2026-27, highlighting the importance of consistent public investment to foster economic growth and equitable regional development.

The administration remains committed to enhancing infrastructure in urban areas with populations exceeding five lakh, especially in Tier-2 and Tier-3 cities that have become critical growth centers.

This strategy aims to alleviate the burden on major metropolitan areas, encourage balanced development, and unlock the economic capabilities of smaller cities nationwide.

A significant aspect of the budget is the proposal to increase public capital expenditure to Rs 12.2 lakh crore for 2026-27, representing a notable rise from the Rs 11.2 lakh crore allocated in the prior budget, thereby continuing the trend of infrastructure-led growth.

The finance minister pointed out that public capex has surged dramatically since 2014-15, when it was approximately Rs 2 lakh crore, highlighting the government's dedication to creating world-class facilities that stimulate employment, connectivity, and long-term productivity.

To foster increased private sector involvement in substantial projects, the minister introduced the concept of an “Infrastructure Risk Guarantee Fund”.

This initiative will provide partial credit guarantees to lenders, carefully designed to alleviate risks during project development and construction. By reducing investment risks, the fund is anticipated to enhance confidence among developers and financial institutions, facilitating the effective execution of crucial infrastructure initiatives.

In the domain of logistics and transportation, the finance minister revealed plans for a new dedicated freight corridor linking Dankuni in the east to Surat in the west. This east-west corridor will enable environmentally friendly cargo transport, lower logistics expenses, relieve road congestion, and improve efficiency in freight movement throughout major industrial regions.

The budget also emphasizes inland waterways as a “green alternative” for cargo transport.

The government aims to operationalize 20 new national waterways over the next five years, starting with National Waterway-5 in Odisha. This will connect mineral-rich areas like Talcher and Angul, along with industrial centers such as Kalinganagar, to major ports, including Paradip and Dhamra, strengthening supply chains and supporting export-driven growth.

To further enhance the waterways framework, a specialized ship-repair facility will be established in Varanasi and Patna. These centers will cater specifically to inland vessels, promoting local maintenance skills, generating employment opportunities, and fostering the growth of river-based logistics in the Ganga-Brahmaputra region.

These initiatives resonate with the overarching vision of Viksit Bharat, integrating multimodal connectivity, risk management for investors, and focused urban-rural connections.