The next round of airport and port privatisation is a sure manifestation of the Government’s resolve to deliver on the pillar of quality infrastructure with minimal involvement, says BVN Rao, Chairman, Transportation and Urban Infrastructure, GMR Group.
The Budget focuses on growth by promoting capital expenditure in infrastructure. This is significant because when infrastructure moves, it pulls more than 200 other sectors along with it, creating a multiple effect in the economy spurring economic growth, he said in a statement.
The Government has demonstrated a resolute and positive approach in giving emphasis on all those sectors which will truly boost capacity, increase production and create employment.
The Budget resonates that infrastructure is clearly on mind of the government. The proposed hike of 34 per cent on a higher base of ₹4.39 lakh crore versus original ₹4.1 lakh crore in FY21 under infrastructure capital expenditure is commendable, he said.
Focus on National Infrastructure Pipeline, exemption of tax on dividend payments for InVits and REITs, making investments attractive for FPI by reducing tax deduction on dividend income, zero coupon bonds for infrastructure are other welcome announcements.
The creation of a DFI has been long overdue and will provide the much-needed booster shot for the $5 trillion infrastructure creation and will have a positive impact on the manufacturing sector, he says.
Launching the National Asset Monetization pipeline to fund new infra projects and the setting up of ‘Asset Reconstruction and Management Company for stressed assets is a much-awaited development.
The National Railway Plan with an outlay of ₹1.07 lakh crore for capex is a welcome step.