Broad gauge connectivity to all NE state capitals by 2020 on target: Budget 2017

GUWAHATI: In a big boost to connectivity in Northeast India, the Union Budget 2017-18 emphasized that broad gauge connectivity to all the capitals of the North-Eastern states is targeted for achievement by 2020.

The Budget added that entire rail network of North-East states will be on Broad gauge by end of 2016-17.

Reacting to the Union Budget, Ranjit Barthakur, chairman FICCI North East Advisory Council, said, “This is a growth oriented, balanced budget and will do a lot to spur demand to put the economy back on a high growth trajectory.”


The increase in capital expenditure will have a multiplier effect and is likely to boost private sector confidence. Reduction of corporate tax to 25% for SMEs and reduction in income tax rate will put money in the hands of people.

Another plus is the decision to treat affordable housing as infrastructure development; this has the potential to give a major boost to the housing sector.

“The emphasis on skill development and education through the Swayam platform, and enhancing the reach of Pradhan Mantri Kaushal Kendras is also a welcome move”, added Barthakur.

He said, “We hope that increased allocation of funds for capital spending is reflected in infrastructure spending in the North East. The region requires substantial investment in roads, railways, inland waterways etc.

Although an allocation of Rs. 10,000 crores have been made for recapitalization of public sector banks, we feel that this amount may not be adequate, given the requirements of the banks and the need to support growth.”