Union budget to bring stimulus in Sagarmala and inland waterways projects: ICRA
New Delhi, Jan 25 (KNN) ICRA in its pre-budget expectations memo on ports, shipping and logistics sectors has said that an increase in budgetary support from the government for flagship projects is needed.
This will also provide a push to the execution process and investments through flagship projects such as Sagarmala and inland waterways projects.
To improve pan India connectivity and speedy implementation of projects like Bharatmala for the road logistics sector, dedicated freight corridor (DFC) for the railways and Sagarmala for the waterways will also be an area of focus in the upcoming budget to be presented on 1st February, said ICRA.
The rating agency noted that there is a high reliance on private sector as in the past few previous years there has been low budgetary allocations to Sagarmala and the inland waterway projects compared to the cost of planned initiatives under these schemes.
Hence ICRA expects the government to introduce some incentives or other measures to boost private investor interest that facilitate more active participation.
It has highlighted the need for digitisation in the logistics sector to lower compliance costs through policy support and create a skilled workforce for the sector.