With initiatives aimed at developing smart cities, airports, highways and ports, and big-ticket announcements in the energy sector, Modi government's maiden budget has put the spotlight on reviving infrastructure growth in the country
Jul 11 2014 : The Economic Times (Bangalore)
BUDGET AT A GLANCE : INFRA - A LAND OF SMART CITIES
With initiatives aimed at developing smart cities, airports, highways and ports, and big-ticket announcements in the energy sector, Modi government's maiden budget has put the spotlight on reviving infrastructure growth in the country
ROADS, AIRPORTS Measure 8,500 km of Highways to be Built in 2014-15 ImpactThis is an average of over 23 km/day, thrice the best achievement of 8 km/day in 2012-13 by NHAI.
Promised investment of Rs 37,880 crore on roads & bridges will spur demand for raw material, clear bottlenecks on highways.
The budget provides Rs 500 crore to prepare plans for expressways along industrial corridors. New airports for tier-I&II cities
SMART CITIES Measure Rs 7,060 crore, Liberal FDI for Smart Cities Impact
The pet project of Prime Minister Narendra Modi aims to provide modern living conditions to people by building Smart Cities as satellites of existing cities or by upgrading mid-sized towns. Smart cities will also be linked to new industrial corridors that the government plans to build. It has also eased foreign investment norms for smart cities. In addition, PPP model will be used to upgrade be used to upgrade infrastructure in 500 urban areas.
POWER REVIVAL Measure Clarity on Tax Holiday for Power Projects Impact
Companies can take 10-yr tax holiday if they start generating, distributing or transmitting power by March 2017. This stable tax regime replaces ad-hoc annual extensions given in the past. It will help the government achieve its mission of providing 24x7 power to all. Shares of power firms such as Tata Power, NTPC as well as equipment makers like BHEL and engineering and construction firm L&T rose soon after the budget.
GREEN ENERGY Measure Big Concessions for Solar, Wind Energy Impact
Solar industry will gain enormously from the decision to invest Rs 500 crore on ultra mega solar power plants. Industry also gains from Rs 100 crore allocated for solar plants along canals and Rs 400 crore for solar irrigation pumps. A green energy corridor is also planned.
A slew of indirect tax concessions for solar and wind energy equipment will also help industry grow and make green energy more affordable.
OIL REFORMS Measure Diesel Decontrol in 1 Year. Pipe to Pak? Impact
Piped gas for households on a mission mode. For pipelines, PPP model will be used to build a national gas grid. LNG, if imported to supply gas to Pakistan, to be duty-free. Diesel prices to be deregulated in a year. For LPG, number of subsidised cylinders may be made `more reasonable'.
URBAN TRANSPORT Measure New Metro Projects to Ease Urban Commute Impact
Lucknow and Ahmedabad to get Rs 100 crore for metro projects.
The government will encourage metro systems, including light rail systems in PPP mode with help of viability gap funding. For cities with population of 2 million plus, planning of metro projects must begin now. This will make people's commute fast and comfortable.
Promised investment of Rs 37,880 crore on roads & bridges will spur demand for raw material, clear bottlenecks on highways.
The budget provides Rs 500 crore to prepare plans for expressways along industrial corridors. New airports for tier-I&II cities
SMART CITIES Measure Rs 7,060 crore, Liberal FDI for Smart Cities Impact
The pet project of Prime Minister Narendra Modi aims to provide modern living conditions to people by building Smart Cities as satellites of existing cities or by upgrading mid-sized towns. Smart cities will also be linked to new industrial corridors that the government plans to build. It has also eased foreign investment norms for smart cities. In addition, PPP model will be used to upgrade be used to upgrade infrastructure in 500 urban areas.
POWER REVIVAL Measure Clarity on Tax Holiday for Power Projects Impact
Companies can take 10-yr tax holiday if they start generating, distributing or transmitting power by March 2017. This stable tax regime replaces ad-hoc annual extensions given in the past. It will help the government achieve its mission of providing 24x7 power to all. Shares of power firms such as Tata Power, NTPC as well as equipment makers like BHEL and engineering and construction firm L&T rose soon after the budget.
GREEN ENERGY Measure Big Concessions for Solar, Wind Energy Impact
Solar industry will gain enormously from the decision to invest Rs 500 crore on ultra mega solar power plants. Industry also gains from Rs 100 crore allocated for solar plants along canals and Rs 400 crore for solar irrigation pumps. A green energy corridor is also planned.
A slew of indirect tax concessions for solar and wind energy equipment will also help industry grow and make green energy more affordable.
OIL REFORMS Measure Diesel Decontrol in 1 Year. Pipe to Pak? Impact
Piped gas for households on a mission mode. For pipelines, PPP model will be used to build a national gas grid. LNG, if imported to supply gas to Pakistan, to be duty-free. Diesel prices to be deregulated in a year. For LPG, number of subsidised cylinders may be made `more reasonable'.
URBAN TRANSPORT Measure New Metro Projects to Ease Urban Commute Impact
Lucknow and Ahmedabad to get Rs 100 crore for metro projects.
The government will encourage metro systems, including light rail systems in PPP mode with help of viability gap funding. For cities with population of 2 million plus, planning of metro projects must begin now. This will make people's commute fast and comfortable.
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