FICCI National Committee on Transport Infrastructure has welcomed the mammoth budgetary support of approximately Rs 100 lakh crore under the union budget for the infrastructure sector for the next five years. This includes roadways, railways, shipping and aviation.
FICCI Transport Infrastructure committee has also welcomed government’s move to upgrade 1.25 lakh Km of roads under Pradhan Mantri Gram Sadak Yojna at an estimated cost of nearly Rs 80,200 crore.
“The Union government in it’s budget has emphasized on providing a massive push to all kinds of physical connectivity by taking forward programs across various key sub-sectors such as roads, rail, inland waterways, air connectivity. There was a dire need to give impetus to the infrastructure sector in view of its capital-intensive nature and long gestation period for infrastructure projects. Hence, augmented budgetary allocation, would ensure time-bound creation of world-class infrastructure and propel India’s overall development.” Said Mr K K Kapila, Co-chairperson, FICCI National Committee on Transport Infrastructure and President, Emeritus , International Road Federation (IRF) reacting to the Union budget presented Union Finance Minister Mrs Nirmala Sitharaman.
“From highway construction to expansion in civil aviation and the start of inland waterway freight services, the Rs 100 Lakh crore allocation will help to boost infra sector. The infrastructure sector is a key driver for the Indian economy and the most tangible evidence of the nation’s progress. Investment in this sector has a cascading impact on all sectors such as banking and financial sector, logistics, power sector. Infrastructure sector also aids in employment generation and socio-economic development of the country. “ Mr Kapila said.
“Allocation of Rs.80,200 crore for the Pradhan Mantri Gram Sadak Yojana (PMGSY) will help in giving better connectivity to the rural India and thus boost the infra sector as well as economy of the country” Mr Kapila said.
“Of late, a number of infrastructure companies are under stress due to financial hardships as private players and institutions dedicated for infrastructure financing are reluctant to come forward and invest in this sector due to issues such as lengthy dispute resolution, stuck claims, delays, cost-overruns, etc. In order to boost investment in infrastructure sector, we urge the Government to provide for incentives such as extension of tax holidays for infrastructure projects and reduction in taxation.” Mr Kapila added