FICCI Infra Committee welcomes Govt Move to allocate Rs 1.7 lakh crore in infra sector in the Union Bidget for the year 2020-21

FICCI National Committee on Transport Infrastructure has welcomed the mammoth budgetary support of approximately Rs 1.7 lakh crore under the union budget for the transport  infrastructure sector for the year 2020-21  This includes roadways, railways, shipping and aviation.

FICCI Transport Infrastructure committee has also welcomed government’s move to release national logistics policy soon, monetisation of 12 highway bundles by National Highway Authority of India (NHAI), development of 2,500 Km of highways and 9000 Km of economic corridor’s along with other rail and coastal projects .

 “The Union government in it’s budget has emphasized on providing a massive push to all kinds of mobile 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) in a press statement .

 “From highway construction to expansion in civil aviation and the start of inland waterway freight services, the Rs 1.7 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.

 “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