As part of the 3rd engine of investment in economy, Union Minister for Finance and Corporate Affairs Nirmala Sitharaman proposed multi-sectoral reforms encompassing Public Private Partnerships, support to States, Asset Monetisation Plan for 2025-2030, mining sector, and support to domestic manufacturing, while presenting the Union Budget 2025-26 in Parliament.
Public Private Partnership in Infrastructure
Sitharaman proposed that each infrastructure-related ministry will come up with a 3-year pipeline of projects that can be implemented in PPP mode, and States will also be encouraged to initiate and seek support from the India Infrastructure Project Development Fund (IIPDF) scheme to prepare PPP proposals.
Support to States for Infrastructure
The Union Finance Minister proposed an outlay of Rs 1.5 lakh crore for the 50-year interest free loans to states for capital expenditure and incentives for reforms.
Asset Monetisation Plan 2025-30
Building on the success of the first Asset Monetisation Plan announced in 2021, Sitharaman proposed to launch the Second Plan for 2025-30 to plough back capital of Rs 10 lakh crore in new projects with fine-tuning of the regulatory and fiscal measures to support the Plan.
Mining Sector Reforms
The Union Finance Minister proposed mining sector reforms, including those for minor minerals, through sharing of best practices and institution of a State Mining Index.
PM Gati Shakti Data for Private Sector
Sitharaman proposed to provide access to relevant data and maps from the PM Gati Shakti portal for furthering PPPs and assisting the private sector in project planning.
Nuclear Energy
As part of its commitment to energy transition and achieving sustainable energy solutions, the Union Budget 2025 also placed a strong emphasis on the role of nuclear energy. Finance Minister Sitharaman highlighted the goal of achieving 100 GW of nuclear energy by 2047, underlining the importance of nuclear power in India’s future energy mix. To support this objective, a dedicated Nuclear Energy Mission will be set up, focusing on the research and development of small modular reactors (SMRs).With an outlay of Rs 20,000 crore, this mission will drive innovation in nuclear energy technologies, providing the necessary infrastructure for the future of clean energy.