The Secretariat for Infrastructure in the Planning Commission is involved in initiating policies that would ensure time-bound creation of world class infrastructure delivering services matching international standards, developing structures that maximise the role of public-private partnerships (PPPs) and monitoring progress of key infrastructure projects to ensure that established targets are realised.
It has also been suggested that special funds be created for urban infrastructure development including metro rail projects, road building, comprehensive water management and sewage treatment plants in various cities in the country. Also the ambiguity in taxation policies, land holding and construction rules and regulations of centre, state and local governing councils could be addressed. Efforts should also be made to spur investments in the rural infrastructure sector under the Bharat Nirman scheme.
The industry will be expecting a greater thrust towards increasing intermediation of retail savings into infra debt to give a major boost for infrastructure segment.Rationalisation of taxation system is required. Further steps could be to:
- Widen the scope of public private partnership for urban development projects
- Avoid any measure that affect the cost of housing projects
- Industry status for hospitality sector
- Focus on implementation in order to achieve projected growth
Some of the key expectations and recommendations for the sector include: tax deduction and extending its applicability to activities in setting up venture capital funds, tax rebates, grants for advanced skills development programmes, exemption from excise/custom as well as on their raw materials and also on capital goods and availability of soft loans will contribute to the growth of Industry and nation. These are achievable and require relevant policies.
This policy change will help India to expand its infrastructure in rail, road, airport and port sector. The better connectivity will help the industry to move faster and keep their momentum. This will encourage other multinationals to set up their business units in India. Moderate labour policy will help companies to do more business in different segment. All this would add up to increased investment from overseas as FDI or FII in different sector which are related to infrastructure development and would go a long way in the growth of the Indian industry.
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