Encouraging private investments on Infrastructure to enhance competitiveness

PNC Infratech Ltd

PNC Infratech Ltd

The Level of Investments in Infrastructure will help the people’s lives, the finance minister said and no one will ask about: improving the people’s lives for better access to healthcare, education, and livelihoods.

The economic development will always have a better role in the private sector and the creation of a better society.

The budget continuously target on upgrading the stocks of physical, digital, as well as social infrastructure like

  1. energy to transportation
  2. logistics
  3. urban assets
  4. provisioning of water
  5. healthcare
  6. education
  7. and rural agricultural markets, etc.

The proposed investment of over₹ 100 lakh crore in around 6,500 projects come across this sector of the National Infrastructure.

The Financial Budget proposes a package of measures ranging from tax benefits for sovereign wealth funds, tax relief for investment in sectors like energy, and non-banking funding.

From the following proposals, exempt sovereign wealth funds from tax to interest, dividends and capital gains from debt and equal investments in the sectors will boost investments for the investors.

The small-term investment has a three-year lock-in. The tax rate of 5% is available on the interest paid to non-residents on long-term infrastructure bonds, has been extended until July 2023. This will facilitate debt funding from overseas investors for infrastructure.

The investment inflow will also require a series of measures like:

  1. ensuring policy stability,
  2. re-calibration of risk-allocation policies to the private sectors
  3. and contract enforcement procedures Which the budget promises.

The budget extends his support to the new sectors like:

  1. healthcare,
  2. agricultural cold chains,
  3. smart cities and
  4. ports.

On the recommendations from the Kelkar committee recreating the policy and regulatory architecture around PPP’s for attracting private investments.

The cost of logistics in India is a drawback for competitiveness. A National Logistics Policy was announced, the roles and responsibilities of government and regulators.

The Creation of a single-window e-logistics marketplace will address the needs and to smoothen the process for industry and agricultural products. The MSME is the main sector for critical generators of employment.

Considerations of infrastructure, there is a need to improve air quality in cities for public health concerns, even impacting areas like an inward investment. The plan to invest ₹4,400 crores for improving air quality in cities with populations exceeding 1 million under the National Climate Action Plan.

The infrastructure investments will create jobs in asset building, upkeep, and utilization.  The benefits will be seen in income levels, particularly in agriculture, access to healthcare and education, and reduced inequality.

With this implementation, the infrastructure can serve as healthy and peaceful to help the economy and enhance national competitiveness.




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