Budget to bring smiles to the Infrastructure Sector: Industry expectations
All the eyes are on the current budget as after a few years of slow economic growth and poor GDP, the industries and the general public is looking at the maiden budget of the Modi led government with a lot of expectations. The finance companies and analysts are speculating that the infrastructure sector is expecting a boost from this 2014-15 budget which may set a road map for the economy as a whole and the infrastructure sector in particular.
Hemant Kanoria the Chairman and Managing Director of Srei Infrastructure Finance mentioned that they are expecting the government to remove hurdles that can fast-track capacity creation in the power and road sectors. He wanted the government to re-introduce the tax-saving infrastructure bonds with an increase in its minimum limit from Rs 20,000 (when it was discontinued) to Rs.50, 000 per person per annum.
The industry feels that this move will help the government to raise funds for the infrastructure projects and the investors will be benefitted as it will save tax for them as well as reap in good benefits.
Kanoria also suggested that for an emerging nation like India where majority of infrastructure players are cost-conscious SMEs (Small and Medium Enterprises) if the infrastructure financing is encouraged, then it will nurture and encourage leasing.
Girish Kadam the Vice President of ICRA (Investment Information and Credit Rating Agency of India Limited) agreed to Kanoria’s suggestion of increasing the investment limit of tax-free bonds and requested the government to encourage PPP (Public Private Partnership) route for investments in dedicated railway connectivity projects from coal-mining areas to end-user projects etc.
Source- The Hindu
(Investment Information and Credit Rating Agency of India Limited, 2014-15 budget, GDP, Girish Kadam the Vice President of ICRA, ICRA, infrastructure sector, PPP, Public-private partnership, Small and medium enterprises, SMEs, tax-saving infrastructure bonds
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Infrastructure Sector expects positive news from union budget 2014. Expects the policy to raise funds and speedy completion of Infrastructure projects.
Infrastructure Sector expects re-introducing of the tax-saving infrastructure bonds and encouragement of infrastructure financing.