FM has showcased commitment to core sector development: Deloitte

The Finance Minister reiterated need for significant investment in various Infrastructure Sectors. The government’s dependence on private sector for augmenting the investment through PPP route was also restated. To this effect, FM widened the ambit of VGF Scheme by including  new infrastructure areas.

He also provided more avenues of raising funds with measures like relaxing ECB guidelines, reductions in WHT, proposal to remove cascading effect of DDT. FM has restrained by providing special attention only to a few large projects. Rather he has stressed importance to flagship programmes and nodal organisations such as NHAI responsible for spread heading the progress in the sector.

By allowing these organisations to raise Rs 60,000 crore through tax free bonds (100% increase over last year) he has also showcased the government’s commitment to provide required financial support to these Organisations. 

He also offered helping hand to ailing airlines industry by allowing raising ECBs, reduction in WHT as also some concessions in customs duty.  Proposal to harmonize master list of infrastructure sector approved by the Government will be quite useful  to remove ambiguity in the policy and regulatory domain and encourage investment in the infrastructure sector.

--Vishwas Udgirkar, Senior Director, Deloitte in India on impact on infrastructure and transport