Rural infrastructure spending raised to Rs.140 bn

February 29th, 2008 - 6:40 pm ICT by admin  

A file-photo of P. Chidambaram

New Delhi, Feb 29 (IANS) The rural infrastructure spending has been raised to Rs.140 billion ($3.5 billion) in the 2008-09 budget to support development projects in the rural areas. In his fifth straight budget speech, Finance Minister P. Chidambaram Friday said: “The Rural Infrastructure Development Fund (RIDF) is the main instrument to channalise bank funds for financing rural infrastructure, and it is quite popular among state governments. Therefore, I propose to raise the corpus of RIDF-XIV in 2008-09 to Rs.140 billion.”

The budget also proposed to operate a separate window under RIDF for developing rural roads with a corpus of Rs.40 billion.

Besides, the government has proposed to create a Rs.12 billion fund in the National Housing Bank to enhance its re-finance operations in the rural housing sector.

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