The Union Budget for 2013-14 attempts to re-start the growth engine while maintaining fiscal integrity, said Hemant Kanoria, Chairman and Managing Director of Srei Infrastructure Finance Ltd.

“It is heartening to note that infrastructure development has figured prominently. The initiatives to provide support to infrastructure debt funds (IDFs) are commendable, especially as banks are constrained and unable to increase their exposure to infrastructure projects,” he said.

IDFs, Kanoria said, would be able to mobilise resources from a diverse cross-section of investors with active participation from the Centre.

Enhanced corpus for MGNREGA, PMGSY, RIDF and Indira Awas Yojana are some of the other positives for the infrastructure space.

The decision to announce 3,000 km of new road projects in the next six months, the proposal to build two new ports (in West Bengal and Andhra Pradesh), one harbour in Tamil Nadu, dredging of national waterways, proposal to create a grid (combining ports, inland waterways and roadways) augur well for the infrastructure sector, he said.

Providing additional funds to the National Housing Fund to promote rural housing and instructing them to set up an urban housing fund and additional tax incentives for first time home owners were also positive measures, he said.

“I feel all these steps will play an important role in stimulating internal demand that will help in pushing the economy to a higher growth path,” he pointed out.

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