Budget reaction “Consulting engineers infra committee welcomes 1.18 lakh crore budget allocation for Ministry of Road Transport and highways

The Consulting Engineers Association of India’s (CEAI)  infrastructure committee has welcomed the mammoth budgetary support of approximately Rs 5.54 lakh crore for capital expenditure   under the Union Budget and enhanced outlay of Rs 1.18 lakh for the Union Ministry of Transport and Highways (MoRTH) as this is expected to give massive infrastructure push in the country.

CEAI Infrastructure committee has also welcomed government’s move to launch national monetisation for potential brownfield infrastructure assets including National highways. Development of 11,000 of National highways and economic corridor’s along with other rail and coastal projects will further boost the infrastructure sector as well as generate more employment  .

 “The Union government in it’s budget has emphasized on providing a massive push to all kinds of mobile connectivity by  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, chairperson, Consulting Engineers Association of India *CEAI), Infrastructure committee and President Emeritus, International Road Federation (IRF) a global body working for better and safer roads world wide ..

 “From highway construction to expansion in civil aviation and the start of inland waterway freight services, the Rs 5.54 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.

The Development Finance Institute (DFI)  is proposed to be capitalized with Rs 20,000 crore and is expected to have a lending portfolio of at least Rs 5 lakh crores within three years’ time. This will help the infra companies as 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 the 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.