The Union Budget proposals for the infra sector evoked mixed reactions here.

M Gautham Reddy, Executive Director of Ramky Infrastructure, said, “One of they key aspects of the budget has been the effort to create a better environment for the infrastructure by allocation of funds and also seeking to address the sector concerns. All these would have a positive impact on the sector and attract much needed FDI into the sector.”

Allocation for roads According to Isaac A George, Group CFO, GVK, “FM focus has been mainly on rural and agriculture sector but there has been good allocation for the road sector. A number of infrastructure projects have been struck over the years, and the FM is seeking to address them by creating a mechanism for PPP mode projects. However, we need to see the fine print as to how these PPP projects get addressed.”

Arvind Mahajan, Head of Infrastructure and Government Services, KPMG in India, said, “The proposals to strengthen public sector banks along with the bankruptcy law will enable strategic restructuring of stressed and stalled infrastructure projects. Effective execution on this will be positive for the infrastructure sector and the economy. Focus on PPPs to start the private investment cycle by addressing key challenges through 3 point framework – Resolution of Dispute bills; guidelines for renegotiation of PPPs; and talk of new credit rating system for Infra projects is commendable. Implementation of these measures would be the key.”

S Raghupathy, Executive Director of CII-IGBC, said, “The move to increase the clean energy cess on coal from Rs 200 a tonne to Rs 400 a tonne would help garner about Rs 26,000 crore in 2016-17 and this in turn would be useful in redeploying the funds for the growth of the energy sector, particularly renewables.”

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