02 Jul 2019 21:57 IST

Budget 2019: Infrastructure awaits policy boost

Two key areas — roads and power — expect to benefit from higher outlays, sectoral reforms

During the term of the earlier Modi government, road construction progressed at a brisk pace, increasing from 12 km per day in FY14 to 30-32 km in FY19-20. Budgetary allocations grew steadily. But over the past year, the sector seems to have run into roadblocks. 

In the power sector, although the reforms were introduced since the beginning of the earlier NDA regime, they failed to galvanise power companies. Due to heavy losses, State power distribution companies (discoms) could not fulfill their mandate of providing electricity to all parts of the country. 

In this video, BusinessLine Research Analyst Vivek Ananth outlines the reforms needed in both these sectors.