Budget 2022 – Sectorwise key announcements and new schemes

budget 2022

Public infrastructure

A new mission – In Budget 2022‘PM GatiShakti National Master Plan’ has been announced which will focus on the development of – Roads, Railways, Airports, Ports, Mass Transport, Waterways, and Logistics infrastructure.

Road projects – 20,000 crores has been allocated for the development of 25,000 km national highways

Digital enhancement – ‘Unified Logistics Interface Platform (ULIP)’ will be developed for data exchange amongst all modes of transportation of goods and passengers

Warehousing – Contracts for developing ‘Multimodal Logistics Park’ at four locations, under Public-Private Partnership (PPP) model. Logistic parks are industrial areas designed for storage, management, distribution and transportation of goods.

Railway projects – In budget 2022 400 new Vande Bharat trains to be manufactured (over next 3 years)

Railway projects – ‘Kavach’ technology of Indian railways for safety and capacity augmentation will be increased to cover a 2,000 km rail network

Marketing initiative – In Budget 2022Railways will launch new products and efficient logistics services for farmers and small enterprises; ‘One station one product’ to popularise local products; Railways and postal network to be integrated.

Water transportation – In budget 2022 , 100 PM GatiShakti Cargo terminals to be developed (over next 3 years)

Remote connectivity – Contracts for 8 ropeway projects for a length of 60 km to be awarded under the Public-Private Partnership (PPP) model

City transportation – Faster implementation and standardisation of metro systems

Agriculture

MSP procurements – In Budget 20222.37 lakh crore allocated for procurement of wheat and paddy through Minimum Support Price (MSP) arrangements

River linking project – Implementation of ‘Ken-Betwa Link Project’ with an estimated cost of 44,605 crores which will provide irrigation, water supply, hydroelectricity generation and solar power generation; 1,400 crores have been allocated for FY 2023

River linking project – Support for five river linking projects will be provided once consensus is reached amongst concerned states; namely Damanganga-Pinjal, Par-Tapi-Narmada, Godavari-Krishna, Krishna-Pennar and Pennar-Cauvery

Drones for farming – ‘Kisan Drones’ for crop assessment, digitization of land records, spraying of insecticides, and nutrients

Sustainable farming – Chemical-free Natural Farming to be promoted, with 5 km corridor along river Ganga in the first stage

Millets – Support for Millets production, as 2023 has been declared International Year of Millets

Oilseed – A rationalised comprehensive scheme to increase oilseed production

Digital enhancement – Digital and hi-tech services to farmers through public-private partnership (PPP) model

Fruits and vegetables – Comprehensive package for the adoption of suitable varieties of fruits and vegetables for food processing

Small businesses and corporates

Digital rupee – Central Bank Digital Currency (CBDC) ‘Digital Rupee’ to be launched for a more efficient and cheaper currency management system, using blockchain and other technologies. It will be issued by the Reserve Bank of India (RBI) starting FY 2023.

New mission – ‘Ease of Doing Business EODB 2.0’ and ‘Ease of Living’ to be launched

New mission – ‘Raising and Accelerating MSME Performance (RAMP)’ programme to be launched for strengthening the MSME sector, estimated outlay of 6,000 crores (over next 5 years)

Green clearances –  Single window portal ‘Parivesh’ for green clearances (launched in 2018) to be expanded; application for all four approvals through a single form and tracking through Centralized Processing Centre-Green (CPC-Green)

Drones – ‘Drone Shakti’ project will promote startups that facilitate Drone-as-a-Service (DrAAS)

Emergency credit – Emergency Credit Line Guarantee Scheme (ECLGS) extended till March 2023 with guaranteed cover increased by 50,000 crores to existing 5 lakh crores; of which certain amount will be earmarked for the hospitality sector

Credit guarantee – Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) scheme to be revamped with a required infusion of funds, to facilitate additional credit of 2 lakh crore

Digital enhancement – Udyam, e-Shram, NCS and ASEEM portals to be interlinked, and to provide providing G2C, B2C and B2B services concerning credit facilitation, skills development and recruitment

Digital enhancement – 100% of the 1.5 lakh post office savings bank to integrate with core banking system (CBS)

Digital banking – 75 Digital Banking Units (DBUs) to be set up in 75 districts of the country by Scheduled Commercial Banks.

Digital payments – Financial support for developing digital payment ecosystem to be continued

Cross border insolvency – Amendments in the Insolvency and Bankruptcy Code (IBC) to be carried out to enhance the efficacy of the resolution process and facilitate cross border insolvency resolution.

Accelerated corporate exit – Digital systems to be established for Processing Accelerated Corporate Exit (C-PACE) to facilitate and speed up the voluntary winding-up of companies within 6 months, instead of 2 years (only for companies registered through ‘Accelerated Registration’)

Special Economic Zones (SEZ) – Special Economic Zones Act to be replaced with new legislation to enable the states to become partners in ‘Development of Enterprise and Service Hubs’.

Government procurements – Payment of 75% of the Government procurements, mandatorily within 10 days and encouraging settlement of disputes through conciliation; Online e-bill system for all central government ministries to be launched.

Government procurements – Surety bonds will be accepted as a substitute for bank guarantee

Education and employment

Animation, Visual Effects, Gaming, and Comic (AVGC) sector – AVGC promotion task force to be set up to recommend to build domestic capacity in the sector.

Sunrise opportunities – Support for research and development in Artificial Intelligence, Geospatial Systems and Drones, Semiconductor and its eco-system, Space Economy, Genomics and Pharmaceuticals, Green Energy, and Clean Mobility Systems

Financing of Sunrise opportunities – For encouraging important sunrise sectors, thematic funds with blended finance consisting of 20% government funds and managed by private fund managers to be launched.

GIFT City – World-class foreign universities and institutions to be allowed to offer courses in Financial Management, FinTech, Science, Technology, Engineering and Mathematics free from domestic regulations, in the Gujarat International Finance Tec-City (GIFT City), an under-construction central business district in Gandhinagar.

VC and PE investments – Expert committee to examine and suggest appropriate measures for scale-up Venture Capital and Private Equity investments

Educational qualifications – National Skill Qualification Framework (NSQF) which organises qualifications according to levels of knowledge, skills and aptitude, to be realigned

Digital skills and training – ‘Digital Ecosystem for Skilling and Livelihood’ (DESH-Stack) e-portal to be launched to empower citizens to skill, reskill or upskill through online training

School education – PM eVIDYA ‘One class, One TV channel’ to be expanded from 12 to 200 television channels, enabling states to provide supplementary education in regional languages for classes 1-12

Urban planning coursesCourses in urban planning and design to be set up in 5 academic institutions designated as centres of excellence, with endowment funds of 250 crores each

Digital university – Establishment of ‘Digital University to provide access to world-class universal education

Vocational courses – Promotion of vocational courses related to critical thinking skills, creativity; 750 virtual labs in science and mathematics, and 75 skilling e-labs for simulated learning to be set up; digital teachers to provide high-quality e-content

Health and sanitation

New mission – ‘National Digital Health Ecosystem’ to be rolled out consisting of digital registries of health providers and health facilities, unique health identity, consent framework, and universal access to health facilities.

Mental health – ‘National Tele Mental Health Programme’ to be launched which will include 23 tele-mental health centres, with NIMHANS being the nodal centre and International Institute of Information Technology – Bangalore (IIITB) providing technical support.

Women and children – Mission ‘Shakti’, Mission ‘Vatsalya’, ‘Saksham Anganwadi’ and ‘Poshan 2.0’ to continue providing integrated benefits to women and children. Two lakh anganwadis to be upgraded.

Water supply – Coverage of ‘Har Ghar, Nal Se Jal’ to be expanded from existing 8.7 crores (5.5 crore new connections in last 2 years) to cover 3.8 crore additional households in next year; 60,000 crores allocated to the scheme

Small housing – 80 lakh houses to be identified as eligible beneficiaries of ‘PM Awas Yojana’ with 48,000 crore allocation

Projects for Northeast – ‘Prime Minister’s Development Initiative for North-East’ (PM-DevINE) to be implemented through the North-Eastern Council for social development projects in North-east; an initial amount of 1,500 crores allocated

Backward districts – ‘Aspirational District Programme’ to continue improving 112 backward districts of the country

Remote villages – In budget 2022‘Vibrant Villages Programme’ to develop infrastructure in remote villages (in northern states).

Urban development and living

Urban planning – High-level committee of reputed urban planners, urban economists and institutions to be formed to recommend policies, capacity building, planning, implementation and governance.

Urban planning support – Support to state governments will be provided for modernization of building bye-laws, Town Planning Schemes (TPS), and Transit-Oriented Development (TOD)

Electronic land records – State governments to be encouraged to adopt the ‘Unique Land Parcel Identification Number’ to facilitate electronic management of land records.

Property registration – In budget 2022National Generic Document Registration System (NGDRS)’ to be rolled out nationwide under ‘One-Nation One Registration Software’ scheme to facilitation ‘anywhere registration’ of deeds & documents.

E-passports – e-Passports using embedded chips and futuristic technology to be rolled out in FY 2023 to enhance convenience for the citizens in their overseas travel.

Battery swapping policy – Battery Swapping Policy to be introduced and private sector to be encouraged to develop sustainable and innovative business models for ‘Battery or Energy as a Service, to address the space constraint in urban areas for setting up charging stations.

Telecom

5G Spectrum Auctions – Spectrum auctions to be conducted in 2022 to facilitate the rollout of 5G mobile services in FY 2023

Production Linked Incentive (PLI) scheme – A PLI scheme for design-led manufacturing to be launched to build a strong ecosystem for 5G telecom services.

Affordable telecom services – 5% of annual collections in ‘Universal Service Obligation Fund’ to be allocated to promote research and development, and commercialization of technologies and solutions for affordable broadband and mobile services

Optical Fibre – Contracts for laying optical fibre in villages and remote areas to be awarded under the ‘Bharatnet’ Project through in FY 2023, expected to be completed by FY 2025

Defence

New mission – In Budget 202268% of the capital procurement to be earmarked for the domestic industry in FY 2023 (58% in FY 2022)

Research and development – Defence R&D will be opened up for private industries, startups and academia with 25% of defence budget earmarked for this purpose; independent nodal umbrella body to be set up for testing and certification requirements.

Energy

Data Centres and Energy Storage – Data Centres and Energy Storage Systems including dense charging infrastructure and grid-scale battery systems to be included in the harmonized list of infrastructure, to facilitate credit availability for digital infrastructure and clean energy storage.

Solar energy – Production Linked Incentive (PLI) scheme for the manufacture of high-efficiency modules, with priority to fully integrated manufacturing units from polysilicon to solar PV modules will receive an additional allocation of 19,500 crores to facilitate a target of 280 gigawatts installed solar capacity by 2030

Recycling products – Active public policies covering regulations, extended producers’ responsibilities framework and innovation facilitation as a part of the action plan for electronic waste, end-of-life vehicles, used oil waste, and toxic & hazardous industrial waste

Thermal power – 5-7% biomass pellets to be co-fired in thermal power plants to save CO2 of 38 MMT annually.

Coal gasification – 4 pilot projects for coal gasification and conversion of coal into chemicals required for the industry to be set up

Forests – Policies and legislative changes to be brought in to promote agroforestry and private forestry

Green bonds – In Budget 2022 Sovereign Green Bonds to be issued for mobilizing resources for green infrastructure; proceeds to be deployed in public sector projects that help in reducing carbon
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