Delhi Infra & Realty Set for a Huge Boost
With its presentation of the mega INR 1 trillion Delhi state budget for 2025-26, the government in Delhi is focusing on reviving and rejuvenating the current flagging social and physical infrastructure to boost urban development
The Budget shows that the new government in the National Capital City of Delhi has kept its promise of enhanced infra spending, which is clearly evident from 31.5% hike over the budget estimates of 2024-25 of INR 76000 crores and 44% increase over the revised estimates of INR 69500 crore. What’s more, 28% of the budget (INR 28000 crores) is allocated for the capital expenditure, for building assets like roads, bridges, flyovers, public transport, power, education, and health infra. Focusing on 10 key areas of physical infra, health, water, transport, drainage and flood control, power, Yamuna rejuvenation, social security, culture and good governance, the Budget has enhanced 20% allocation for MCD to INR 10537 crore, which in turn will help strengthen the fledgling infrastructure.
To bolster civic infra, the Budget has provided an INR 9000 crore push for clean drinking water and sanitation. For revamping water infra, the focus is on bridging the gap between the daily demand of 1290 MGD and current installed capacity of 1000 MGD. There is a budgetary allocation of INR 200 crore for laying pipelines in place of open canals for Haryana to prevent water loss and increase efficiency, besides earmarking INR 150 crores for emergency water storage.
For boosting the education infra, INR 500 crore has been set aside for developing Education City in Narela, INR 100 crore for setting up 7000 smart classrooms, INR 50 crores for computer labs, besides provision for expanding campuses of some universities.
For strengthening the health infra, INR 3421 crores have been allocated for capital projects and INR 320 crore for wellness centres to improve primary health care infra. On the power infra front, the budget talks about equipping 2,3 lakh residential rooftops with solar energy over the next three years, for which subsidy will be provided under PM Surya Ghar.
As Yamuna cleaning was BJP’s major poll plank, the Budget has allocated a huge sum of INR 9000 crores for water and sanitation, aiming to restore the lost glory of the Yamuna river. An INR 500 crore of investment has been set aside for 40 decentralised STPs to ensure wastewater treatment at the source before it reaches the Yamuna. The STPs will be upgraded to enhance their efficiency. Similarly, INR 250 crores have been earmarked to treat polluted drains which contaminate the Yamuna river. Another INR 40 crores have been set aside for trash skimming, weed harvesting to remove waste and sludge from the river. An investment of INR 250 crores is to be made on old sewer lines to control leakages and blockages to prevent the Yamuna river from pollution. A dedicated master plan for Yamuna rejuvenation is in the works. Under this, the Yamuna Riverfront is to be revamped and ferry services will be started as a major tourist attraction.
Revamped Road & Transport Infrastructure to Boost Connectivity
In line with BJP’s poll promise to bolster the capital’s infrastructure, there’s a major focus on the road and transport sector with a budgetary allocation of INR 3834 crore – more than double of last year for improvement of road and bridge infrastructure. The key Delhi-Rohtak Road will be upgraded to an E-way by NHAI, and in Lutyens Zone, 78 roads will be upgraded. There is an additional allocation of INR 350 crore under MLA-LAD Fund for strengthening and expansion of road infra, lanes, street lighting etc.
The Budget has allocated INR 12952 crore to improve the public transport system. Delhi will be adding over 5000 e-buses to its fleet. The new EV Policy 2.0 envisages replacement of all CNG autorickshaws, taxis and light commercial vehicles by electric vehicles in a phased manner. Three new ISBTs will be operationalised at Tikri border, Mundka, and Narela, for enhancing regional connectivity with Haryana, Uttar Pradesh, and Rajasthan. The Budget also provides for redevelopment of Anand Vihar and Sarai Kale Khan ISBTs.
Boost to Delhi-NCR Connectivity
There is INR 1000 crore funding for improving the connectivity of Delhi with NCR. In order to make intercity travel smoother, NHAI is already readying three DPRs for UER 2 link to Delhi-Katra Eway via KMP, UER 2 link to Tronica City and Delhi -Dehradun Eway link to Noida. The long-delayed INA-Mandela Marg elevated corridor is expected to be expedited by NHAI to provide relief to commuters on Ring Road. NHAI will also be building a tunnel between Nelson Mandela Marg and Shiv Murti Interchange on NH48 to provide seamless connectivity to IGIA from South and East Delhi.
New road upgrades links are also in the offing with National Capital Region Planning Board (NCRPB) providing an alternate route to Dwarka Eway, decongesting NH48 and MG Road. Under this, Upper Dwarka Eway will be linked with Najafgarh Road and Gwal Pahari with Andheria More. With Dwarka Expressway and Delhi-Dehradun Expressway getting fully operational this year, Delhi will be getting a major connectivity boost.
The connectivity through Rapid Rail and Metro Rail will also be getting a big push. The Delhi-Meerut RRTS corridor will be completed in next few months and Delhi-Alwar and Delhi-Panipat RRTS corridors will get a nod this year. Delhi Metro Rail has got a boost in the capital’s budget with an allocation of INR 2929.66 crore for work on three corridors of Phase 4 – Mukundpur-Maujpur, RK Ashram-Janakpuri West and AeroCity to Tughlakabad. Delhi Metro has already joined hands with Blue Dart to enhance first mile and last mile connectivity by establishing micro parcel hubs at metro stations to streamline the supply chain across Delhi-NCR.
Industrial Infrastructure Development
To revive industrial development in the capital, the Delhi budget promises new industrial and warehousing policies. The emphasis is on promoting FDI, simplifying business processes, introduction of a single-window system to streamline approvals and regularisation of industrial areas. In order to revamp and modernise existing industrial areas, Delhi government will be working with the Ministry of Housing & Urban Affairs and DDA to convert leased industrial properties into freehold properties. This will generate significant revenue for infrastructure development.
Looking at the slow roll out of EV charging infra in the capital, Delhi’s EV Policy 2.0 is likely to be unveiled in April. Aiming for 95% EV adoption by 2027, this policy will be mandating to set aside 20% parking for EVs in all new buildings. Under the policy, all public parking spaces will have the minimum prescribed infra. Fast chargers will be installed on Ring Road, Outer Ring Road, and under flyovers. Mandates will be included in building bylaws of MCD and NDMC. Five percent of total parking capacity in existing buildings will have installed charging infra, and subsidies will be offered for setting up public and semi-public charging stations. In a significant move, DDA and Convergence Energy Services Limited (CESL) have signed an agreement to develop EV charging and battery swapping stations across DDA sports complexes.
Real Estate & Housing Boost
The big budgetary push to infrastructure will bolster real estate in Delhi. As the BJP government gears up to fulfill its poll promise of ‘Jahan Jhuggi Wahan Pakka Makaan’, slum redevelopment is going to get a major boost. Already in the Budget, INR 696 crore have been allocated to Delhi Urban Shelter Improvement Board to improve slum and JJ colonies. DDA has engaged global accounting firm Ernst & Young for providing advisory services for 10 in-situ slum rehabilitation projects comprising 19 JJ clusters with 26438 households across the city. Housing in Delhi will also get a boost with PMAY Urban 2.0 scheme of the Centre having an outlay of 10 lakh crore.
Going forward, Delhi’s Land Pooling Policy in conjunction with Delhi Master Plan 2041, will provide a major boost to the land-starved housing sector of Delhi. Under DDA’s Land Pooling Policy, 20000 hectares of land is expected to be developed for housing (with 17 lakh new planned houses), commercial areas, and infrastructure. With the double engine government of BJP at the Centre and in Delhi, the long-pending Land Pooling Policy and Delhi Master Plan 2041 is expected to be fast tracked.
Double Engine Government to Surmount Financial Challenges
The new BJP government in Delhi has a challenge on hand to provide funds for its welfare schemes announced in the poll manifesto and at the same time ensure development of infrastructure neglected during the rule of AAP government. Especially as the AAP government leaves Delhi in bad financial health.
According to a CAG report, DTC liabilities have gone up by INR 37000 crore from 2015-16 to 2021-22. However, the BJP government enjoys the benefit of a double engine government at the Centre and in Delhi. This is clearly evident from normal central assistance and other central grants of INR 7968 crore, amounting to 8% of the Budget.
NHAI has been roped in to bolster Delhi’s road and transport infrastructure. Further, the Delhi government will be seeking financial assistance of INR 2000 crore from the Centre to upgrade Delhi’s water and sewage infra to international standards. With the advantage of a double-engine government, the Delhi government has been able to maintain a balance between welfare schemes and infrastructure development in terms of fund allocation.
In the Budget, INR 5100 crore have been set aside for Mahila Samridhi Scheme to provide INR 2500 monthly aid to poor women, INR 100 crore to provide subsidised cooked food to poor, INR 5 crore health insurance cover to poor and senior citizens over 70 years age , INR 210 crore for Mukhya Mantri Matru Vandana Yojana, and INR 50 crore for National Creche Scheme. Clearly, looking ahead, Delhites can expect significant improvements in their quality of life.
(This piece first appeared in NBM&CW magazine)
