Consulting engineers infra committee welcomes budgetary support of Rs 5.54 lakh crore for capital expenditure

New Delhi Feb 1 (KNN) The Consulting Engineers Association of India’s (CEAI)  infrastructure committee has welcomed the mammoth budgetary support of approximately Rs 5.54 lakh crore for capital expenditure and enhanced outlay of Rs 1.18 lakh for the Union Ministry of Transport and Highways (MoRTH) as this is expected to give massive infrastructure push in the country.

CEAI Infrastructure committee has also welcomed the government's move to launch national monetisation for potential brownfield infrastructure assets including National highways. Development of 11,000 of National highways and economic corridor’s along with other rail and coastal projects will further boost the infrastructure sector as well as generate more employment.

“The Union government in its budget has emphasized on providing a massive push to all kinds of mobile connectivity by taking forward programs across various key sub-sectors such as roads, rail, inland waterways, and air connectivity. There was a dire need to give impetus to the infrastructure sector in view of its capital-intensive nature and long gestation period for infrastructure projects. Hence, augmented budgetary allocation, would ensure time-bound creation of world-class infrastructure and propel India’s overall development.” Said K K Kapila, chairperson, CEAI, Infrastructure committee and President Emeritus, International Road Federation (IRF) a global body working for better and safer roads worldwide.

“From highway construction to expansion in civil aviation and the start of inland waterway freight services, the Rs 5.54 lakh crore allocation will help to boost the infra sector. The infrastructure sector is a key driver for the Indian economy and the most tangible evidence of the nation’s progress. Investment in this sector has a cascading impact on all sectors such as banking and financial sector, logistics, power sector. Infrastructure sector also aids in employment generation and socio-economic development of the country, “Kapila added.

He also said that the Development Finance Institute (DFI) is proposed to be capitalized with Rs 20,000 crore and is expected to have a lending portfolio of at least Rs 5 lakh crores within three years' time.

''This will help the infra companies as of late  a number of infrastructure companies are under stress due to financial hardships as private players and institutions dedicated for infrastructure financing are reluctant to come forward and invest in this sector due to issues such as lengthy dispute resolution, stuck claims, delays, cost-overruns, etc. In order to boost investment in the infrastructure sector, we urge the Government to provide for incentives such as extension of tax holidays for infrastructure projects and reduction in taxation.” Kapila added.