CE industry welcomes budget proposals on infrastructure

Delhi-Mumbai, Bangalore-Mumbai industrial corridors and two new port development proposals will give big boost to construction equipment makers

Construction equipment manufacturer, Volvo Construction Equipment has welcomed Finance Minister P Chidambaram’s budget proposals for the infrastructure sector.

“The signs for the road segment seem promising considering the government’s plan to begin work on the Delhi–Mumbai and Bangalore–Mumbai industrial corridors, and infrastructure investment in terms of continuous focus on roads and PMGSY projects,” A M Muralidharan, President, Volvo Construction Equipment said.

Commenting on the budget proposals, he said the planned proposal to award 3,000 kms of road projects in the first six months of FY 2013-14 would provide impetus to the road sector. “Further, the mining sector has seen some bright spots with the government encouraging PPP projects hence reducing dependence on imported coal. I believe this is one of the high points of the budget since mining companies will look at venturing into newer projects,” he said.

The implementation of the GST model will be watched carefully as this is the first time that Rs 9,000 crore has been kept aside for it. “We hope to see a practical road map for GST, in the next two years, with strong constitutional amendments. This will be a huge boost for equipment manufacturers as it will reduce taxes on sales of equipment between states,” he noted.

Apart from this, there are few investments around ports segment; and support for renewable energy using waste, garbage and wind energy. However, there is disappointment in terms of direct taxes. “I don’t see any motivation for the real estate segment barring the Rs 1 lakh benefit that could be taken from the tax for first time house buyers. There is no push for power and retail sectors; and don’t see any direct investment for skill development,” Muralidharan added.