Gati Shakti will provide a push to infrastructure, and the government is planning to build world-class infrastructure which will help the economy to be advanced.
On Tuesday industry players did an announcement for the infrastructure sector in the Union Budget and the proposal to fund infrastructure through Gati Shakti and public-private partnerships will mark the rise of economic prosperity.
Nirmala Sitharam, Finance minister presented the union budget of 2022 in the parliament, announced it on Tuesday. IRB Infrastructure Developers Chairman Virendra D Mhaiskar said, “The budget in overall seems to have given a booster dose to facilitate the faster economic growth of the nation; roads is surely one of the prominent sectors to get deserved focus through adequate funding,”
key pillars of infrastructure i.e. NIP, NMP, and PM Gati Shakti have been fuelled with energy to propel economic growth with announcements relating to railways, roads, and power among others which are indicative of economic expansion mindset and sustainable development. Infrastructure gains momentum as Theory of Big Push gets into play, According to EY India, Tax Partner Infrastructure Samir Kanabar said.
D Mhaiskar said, “The budget in overall seems to have given a booster dose to facilitate the faster economic growth of the nation
Vice President and Group Head, Corporate Ratings, Icra, Rajeshwar Burla, The gross budgetary support towards capital expenditure have been increased significantly with the infrastructure sector being the key beneficiary.
Rajesh Burla said, “The capital expenditure is budgeted to reach the growth to Rs 7.5 trillion in FY2023, which is 35.4 percent higher than Rs 5.5 trillion in Y2022 BE, and 24.4 percent higher than Rs 6.0 trillion in FY2022 RE. This apart, the special assistance as loan to states for capital expenditure has been elevated to Rs 1.0 trillion in FY2023 BE from Rs 15,000 trillion in FY2022 RE,”
The state government is planning to support states who are expected to revive Capex, The higher Capex is expected to provide support to the order inflow for contractors. Even the union budget allowed to use of surety bonds from the insurance company as a substitute for bank guarantees in government procurements.
Rajesh Burla said, “The capital expenditure is budgeted to reach the growth to Rs 7.5 trillion in FY2023, which is 35.4 percent higher.
PM Gati Shakti program aims to build the world-class infrastructure that is a necessary requirement to become an advanced economy. The prime ministerâ€™s vision is commendable and they have made an announcement on direct payment for wheat and paddy farmers under the MSP scheme which is around Rs. 2.37 lakh crore.
The main positive highlights of the Budget give significance to speedy dispute resolution and arbitration by the international arbitration centre; E-bill system for procurements, and quicker payments; implementation of surety bonds; infrastructure status to Data Centres for easier financing according to Himanshu Chaturvedi, Tata project chief strategy officer.
The rationalization of taxation for joint ventures is about 75,000 compliances eliminated/abolished 1,486 union laws repealed to enhance ease of doing business, and tax on project imports were some of the other highlights. These initiatives will ensure that payments are spent faster and provided a fillip to infrastructure companies so that they can focus on doing their core work, creating world-class infrastructure to support India’s growth story, he said.