FICCI infrastructure committee welcomes augmented budgetary allocation for infra sector

FICCI Infrastructure Committee has welcomed the mammoth budgetary support of approximately Rs 4.56 lakh crore under the union budget for the infrastructure sector for the  financial year 2019-20. This includes roadways, railways, shipping and aviation.

“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, tax incentives, strong reinforcement of investment in the sector and key policies would ensure time-bound creation of world-class infrastructure and propel India’s overall development.” Said Mr K K Kapila, Co-chairperson, FICCI Infrastructure committee and Chairman, International Road Federation (IRF) reacting to the Union  budget presented by Interim Finance Minister Piyush Goyal.

“From highway construction to expansion in civil aviation and the start of inland waterway freight services, the augmented budgetary 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.19,000 crore for 2019-20 as against the Rs15,500 crore spent in 2018-19 on 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