It has been reported that Finance Minister Nirmala Sitharaman is likely to present her fourth budget of the Modi 2.0 government with a mission to boost the economy. The Finance Minister has promised that the upcoming Budget will address critical issues of demand generation, job creation, and putting the economy on a sustained 8 percent-plus growth path.
The Budget 2022-23 is likely to be presented on February 1.
Speaking on the expectations from Budget 2022 on Railway Infrastructure Sector, Alain Spohr, Managing Director of Alstom India & South Asia said, “We are positive that this year’s budget will be as progressive as last year’s, where the government allocated a record sum for capital expenditure.”
PLI For Railway Manufacturers
“The sector expectations are in line with the priority accorded to infrastructure projects by the government such as National Infrastructure Pipeline and PM Gati Shakti (National Master Plan for Multi-modal Connectivity),” the report said.
Spohr further said, “We agree with the Finance Minister that connectivity is the essence of the economy and improving intercity connectivity is critical for the formation of smart cities and boosting the pace and volume of economy. We are expecting additional support for the introduction of new technologies such as Metro Lite and Metro Neo for promoting mobility in Tier II & III cities.”
“The sector hopes that the government will further improve on the ease of doing business in India as there is a huge potential for growth. Introducing the production-linked incentives (PLI) for railway manufacturers and exporters promoting Make-in-India would be encouraging while also fast-tracking the implementation of projects and supporting the manufacturing ecosystem. Certainty in policy and adequate government support for project execution can vastly improve private investment in the sector,” the report said.
Net Zero Carbon Emission
“With the ambition to become the largest Green Railways in the world moving towards becoming a ‘net zero carbon emission’, the sector is hopeful that measures to promote energy-efficient and carbon-friendly technologies, processes and practices will feature in the upcoming budget,” the report said.
“Promoting a level playing field for original domestic as well as foreign companies, which have invested substantially in India and contribute towards economic growth, will attract additional investments into the country. The government must consider supporting companies that are significantly invested in India, conducting cutting-edge R&D, and executing large railway development projects to come forward and make India an export hub,” the industry expects.
“These measures will also help India become an Aatmanirbhar Bharat and achieve its aspiration of a $5-trillion GDP,” Spohr concluded. (zee business)
