Infra investment will spur economy growth to 9%: Sandeep Reddy

Pranab Mukherjee’s budget for 2011-12 is expected to boost investment in the infrastructure sector, which in turn will trigger economy on a growth trajectory to achieve 9% growth rate, according to T V Sandeep Kumar Reddy, Managing Director, Gayatri Projects Limited.

He welcomed government’s move to spend Rs 2.14 lakh crore as budgetary support for infrastructure sector in 2011-12 and will set up an infra debt fund to promote foreign investment in the sector.

"The proposal to introduce special infrastructure debt funds to attract foreign financing in infrastructure will certainly help the robust growth of infrastructure sector in the days to come," he said.

Reddy said that the government’s target for spending Rs 2.14 lakh crore in the infrastructure sector, accounting for about 48.5% of Gross Budgetary Support of total plan expenditure and announcement of disbursal of loans worth Rs 20,000 crore by Indian Infrastructure Finance Company Limited (IIFCL) are much needed incentives for the infrastructure sector.

He also welcomed the government’s move to lower the surcharge limit on corporate tax to 5%.