(The Gist of Kurukshetra) Rural Infrastructure in Union Budget 2020-21 [APRIL-2020]

(The Gist of Kurukshetra) Rural Infrastructure in Union Budget 2020-21


Rural Infrastructure in Union Budget 2020-21


  • The government had launched the National Infrastructure Pipeline on December 31, 2019 worth Rs. 103 lakh crore. It consists of more than 6500 projects across sectors and is classified as per the projects’ size and stage of development.
  • The National Infrastructure Pipeline envisions improving the ease of living for each individual in the country. It will also bring in generic and sectoral reforms in development, operation and maintenance of these infrastructure projects.

I. Agriculture

  • Various provisions in the budget 2020-21 related to agriculture is mentioned in the first chapter of this summary.

II. Transport and Logistics

  • Pradhan Mantri Gram Sadak Yojana (PMGSY) was launched in December 2000 to provide connectivity to unconnected habitations as part of a poverty reduction strategy.
  • The outlay for this budget is only 2.63% higher than the budget outlet of 2019-20. The scheme needs to be boosted up and implemented fast to get the desired results.
  • Logistics – Railways will set up a “Kisan Rail’. “Krishi Udan” will be launched. A National Logistics Policy will be launched soon.
  • Inland Waterways – The Jal Vikas Marg on National Waterway-1 will be completed. Further, the 890 km Dhubri-Sadiya connectivity will be completed by 2022. Developing waterways has its impact on the ecosystem on both the banks of the river. This has been conceptualized as “Arth Ganga”.

III. Energy

  • The PM-KUSUM scheme removed farmers’ dependence on diesel and kerosene and linked pump sets to solar energy.
  • Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY) was launched in 2015 with two components:
  • To separate agriculture and non-agricultural feeders facilitating judicious rostering of supply to agricultural and non-agricultural consumers in rural areas and\
  • To strengthening and augmentation of sub transmission and distribution infrastructure in rural areas, including metering of distribution transformers/feeders/consumers.
  • LPG Connections to Poor Households in the form of Pradhan Mantri Ujjwala Yojana (PMUY) was launched in May 2016 to provide 8 crore deposit-free LPG connections to women of poor households. The scope of PMUY has now been expanded to cover all the poor families in the country subject to fulfilling terms and conditions.
  • Pradhan Mantri Sahaj Bijli Har Ghar Yojana in the form of “Saubhagya” was launched in September 2017. Under Saubhagya, free electricity connections to all households (both APL and poor families) in rural areas and poor families in urban areas are provided. Rural Electrification Corporation (REC) has been designated as nodal agency.
  • The scheme also provides Solar Photovoltaic-based standalone systems for un-electrified households located in remote and inaccessible villages/habitations.

IV. Water and Sanitation

  • The govt. is proposing comprehensive measures for one hundred water stressed districts. Focused programmes to assure safe water (Jal Jeevan Mission) and comprehensive sanitation (SBM) have been launched to support the health vision.
  • Water Supply – PM had announced Jal Jeevan Mission in August 2019. The govt. has approved Rs. 3.60 lakh crore for this mission.
  • Sewage Collection, Treatment and Disposal System – Govt. is committed to Open Defecation Free (ODF) plus in order to sustain ODF behavior and to ensure that no one is left behind.
  • The total outlay for Dept. of drinking Water and Sanitation is Rs. 21,518 crore, which is 7% higher than the previous outlay.

V. Communication/IT

  • The govt.’s vision is that all “public institutions” at gram panchayat level should be provided with digital connectivity.
  • Mapping of India’s genetic landscape is critical for next generation medicine, agriculture and biodiversity management. To support this development, the govt. will initiate two new national level science schemes to create a comprehensive database.

VI. Social and Commercial Infrastructure:

  • Affordable Housing – Pradhan Mantri Awas Yojana-Gramin is set up to achieve the objective of “Housing for All” by 2022. The scheme provides assistance for construction of 2.95 crore pucca houses for eligible rural households by March 2022 in phases.
  • Education – The new Education Policy will be announced soon.


  • The budget is highly ambitious on the part of infrastructure development as it is going to absorb Rs. 100 million in the next five years. However, the budget is revealing the intention and the plans of the govt. are very optimistic but the allocations for the rural areas are almost on the constant rate.
  • This needs to be increased. It should be focused that the infrastructure development is not urbancentric.


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Courtesy: Kurukshetra