The Union Budget 2014-15 presented by the Finance Minister Arun Jaitley has given a special thrust on infrastructure development. Captains of construction equipment industry reflects on the Budget proposals.
The Union Government recognising the need for revival of investment cycle had already extended the excise duty cut on capital goods for another six months in June 2014 itself. The Budget´s focus on infrastructure sector, encouraging banks to lend long term funds to infrastructure sector, extending the benefit of investment allowance to small and medium enterprises and emphasis on manufacturing growth should help revive the capital goods sector. While PPP in relation to many new projects has been announced, however, a roadmap for execution of existing held up projects could have helped turn things quickly.´
Vipin Sondhi, MD & CEO, JCB India
´The Government´s plan to allocate Rs 2,037 crore to clean up Ganga; Rs 50,000 crore for urban infrastructure projects and announcement of metro projects in cities with 20 lakh people is very encouraging for construction equipment manufacturers. We were expecting the GST model to be given a nod but this did not happen since the government is still in consultation with different states. This would have been a huge boost for construction equipment manufacturers as it would reduce taxes on sales of equipment between states.´
AM Muralidharan, President, Volvo CE
´Investment in NHAI projects, port connectivity, smart city development, North-east road development project and the 16 new port projects, are some of the initiatives which will definitely create market for the construction equipment industry. We had expected that the retrospective amendment issued during the last Budget would be rolled back, whereas again a committee has been appointed to look into this. We hope that this committee will put an end to this problem quickly to boost investor sentiments.´
Anand Sundaresan, Vice Chairman & MD, Schwing Stetter
´At first reading, the Union Budget does not reflect the optimism generated by earlier government communications but a more detailed analysis is required. A major impact to the concrete machinery sector will only come if and when the speed of the planned infrastructural and real estate developments will substantially increase.
Wilfried Theissen, MD, Putzmeister Concrete Machinery
´The budget allocation for developing non-traditional energy will help reduce the dependence on coal and is an encouraging step towards energy security for us as a nation. The Budget promises thrust to the infrastructure development that plays a significant role in revival of the economy. Timely implementation of the policies will attract investment and will drive growth in economy.´
Shishir Joshipura, Managing Director, SKF India
´The thrust on setting up new industrial clusters is a step in the right direction. The government has also promised to review all the retrospective tax imposition cases. This coupled with overall increase in investments in highways and tax holidays for power plants will definitely contribute to kick start the capex cycle in various industries.´
Tushar Mehendale, Managing Director, ElectroMech