There should be a steady policy and quick redressal of the policy changes that have been brought to the attention of NHAI, AAI, AERA and such organisations. Approval procedures for land acquisition, environment clearance and financing policies for infrastructure need a re-think with a background that they should result in profitability and surpluses for the infrastructure companies investing in these sectors.
Author: admin (Infratructure Today)
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Focus on skilled manpower | Budget 2013-14
Skill enhancement: Availability of skilled manpower and semi-skilled manpower is becoming a bottleneck in execution of projects.Thus enhancing skills for construction sector would help the GDP growth as well. While this problem is being addressed and does not have an immediate solution, semi-skilled manpower development programmes may be included in schemes like NREGA which should encourage skill-enhancement so that over a period they would be employable by the industry.
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Swift approvals for power projects | Budget 2013-14
The country is presently in need of an energy security policy, conveying use of portfolios, basket of fuels; followed by guidelines on how regulators must ensure that at each state level, tariffs are built using bulk sourcing of power, based on prudent mix of portfolio of fuel - comprising of both imported and domestic. In addition, a long-term view needs to be taken to ensure energy security through the development of appropriate alternatives to conventional fuels.
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Facilitate training for technical manpower | Budget 2013-14
Recognise construction industry as a labour intensive industry: There has been a low rate of employment growth in the manufacturing sector. Construction is a labour intensive sector having an employment elasticity of 0.88, higher than agriculture. Presently, employs 30 million people and is expected to generate another 70 million jobs by 2016.
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mprove PPP structure | Budget 2013-14
Besides the need for enhancing capacity which is being met through major capital works like the DFC project, investment in rolling stock, providing improved terminal access, and improvements and investment in the last leg connectivity between the rail network and the cargo loading and unloading points are likely to be key areas that will need to be addressed through various policy initiatives of the Railways.
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Create positive vibes for investments | Budget 2013-14
Abolition of MAT during tax holiday period: Infrastructure company avail tax holiday benefit under 80-IA. Given long gestation and criticality of infrastructure, they are given a 10 year tax holiday. However, it is basically an exemption from paying income tax on the profits and paying MAT on book profits. So, whatever the projects are supposed to have conserved through the 80-IA benefits are being taken away by the MAT levy.
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Promote renewable power | Budget 2013-14
Reliable Power: We believe that providing reliable power should be the first priority, thereby restoring the balance between demand and supply. With this having been accomplished, policy makers can then address the affordability criterion as the next step.Consequently, it is critical that the over 30 GW of capacity (that is ready for commissioning and is awaiting fuel supply), is supplied with fuel immediately. This applies for both coal and gas-based plants.
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More clarity required on taxability | Budget 2013-14
Finance Act (2) of 2009 makes providing PAN details compulsory for certain eligible payments especially on account of freight. Failing which the deductor is expected to deduct TDS at a higher rate Being in logistic sector, the nature of business is such that we are dealing mostly with unorganised sectors where it is very difficult on our part to collect the PAN. Hence, the following is recommended.
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Infra debt will boost the segment | Budget 2013-14
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.
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Extend service tax exemption | Budget 2013-14
Within the Power sector the Transmission & Distribution (T&D) sector merits equal if not more attention. The more serious problem is one of under-investment in the T&D sector. For the last 50 years, India has been able to investment barely half of the desired level of investment in the T&D sector. Transmission lines in India are loaded up to 90 per cent in India against the world standard of 60-65 per cent.