Union budget funds for Indian roads, ports and highway development
International Road Federation (IRF) Chairman, K.K. KApila welcomed Union budget allocation of Rs 37, 850 crore through 2014-15 for road and highway development via National Highy Authority of India (NHAI) towards better connectivity.
Finance Minister’s allocation of Rs 11,635 crore to develop existing ports and harbours, and Rs 14,389 crore for Pradhan Mantri Gram Sadak Yojana is being hailed for its impact on rural development and connectivity .
As road infrastructure sector moved at slow pace these past few years, delay in decision making and disputes resulted in heavy loss to contractors with funds being tied up, as well as interest on loans. Allocation of funds will help road sector to grow quickly for timely delivery of projects.
Budget announcements for new road projects will give further boost the Indian economy, generate employment and help build better infrastructure. Last month continuation of reduced excise duty on the automotive sector stated earlier in the Interim Budget was confirmed. Finance Minister Arun Jaitley has announced investment allowance at 15% for 3 years to manufacturing company’s investing upward of Rs. 25 cr in plant and machinery.
Dr. Wilfried Aulbur, Managing Partner, Roland Berger Strategy Consultants sees the move as a welcome step towards incentivising Indian MSME segment to invest in plant and machinery towards.