Ask an Expert - Infrastructure
Director (Capital Projects and Infrastructure), PwC India)
Highway is one of the major sub-sectors within infrastructure that contributes 15-20 per cent of total investment in infra. Given a drop in private participation in the past two-three years, there seems to be a revival in interest from private players in the public-private partnership (PPP) model, because of some reform measures taken by the ministry in the past year. The hybrid annuity model will largely be adopted under PPP procurement but the engineering, procurement and construction and (EPC) route is likely to account for a major share of procurement in the near future. This Budget should double the allocation for this sector and halve the minimum alternate tax to around 10 per cent.