ICRA expects the government to continue to encourage capacity addition in the renewable energy sector by way of increased budgetary allocation.
The infrastructure sector is expecting a boost from this budget with finance companies and analysts saying that the 2014-15 budget may set a road map for the economy as a whole and infrastructure sector in particular.
“We expect the budget to address issues and remove hurdles that can fast-track capacity creation in the power and road sectors,” Hemant Kanoria, Chairman and Managing Director, Srei Infrastructure Finance, said.
He wanted the government to re-introduce the tax-saving infrastructure bonds with an increase in its minimum limit from Rs.20,000 (when it was discontinued) to Rs.50,000 per person per annum.
For an emerging nation like India where majority of infrastructure players were cost-conscious SMEs, to facilitate infrastructure financing, it was imperative to nurture and encourage leasing, Mr. Kanoria felt.
His suggestion in increasing the investment limit of tax-free bods found an echo in the comments made by Girish Kadam, Vice President of ICRA.
He also wanted the budget to encourage PPP route for investments in dedicated railway connectivity projects from coal-mining areas to end-user projects and relief for stranded gas-based projects.
In addition, ICRA expects the government to continue to encourage capacity addition in the renewable energy sector by way of increased budgetary allocation.