Construction equipment industry lauds Union Budget 2021
Construction equipment industry lauds Union Budget FY21-22 for its bold attempt to address the huge disruption caused by the pandemic. Despite the backdrop of the huge fiscal deficit of 9.5 % for FY21 and an estimated deficit of 6.8 % in FY22 the government has outlined robust measures to boost health care infrastructure, focus on infrastructure development, power sector reforms, promoting innovation and R&D, education and skilling. All of these will help accelerate the revival in the economy. The Budget proposals related to expansion of the National Infrastructure Pipeline (NIP) to include 7400 projects, enhanced outlay of Rs. 1.18 lakh crore for MoRTH, new economic corridors in Tamil Nadu, Kerala, West Bengal & Assam, allocation of Rs. 1.4 lakh crore towards urban Clean India mission, increased focus on Railways, airports and affordable housing amongst others will help create the necessary demand in the construction equipment Industry.
From an infrastructure funding perspective, the announcement of a new Development Finance Institution (DFI) for the infrastructure sector was long overdue and will help enable ease of access of long-term funding. Further, the push to InvITS and REITS through the creation of a “National Monetization Pipeline” of potential brownfield infrastructure assets is a very good step towards monetizing operating public infrastructure assets. Enhancement of the Rural Infra Development Fund to Rs. 40,000 crore and doubling of the micro irrigation fund under NABARD are positive steps towards a more inclusive and all round growth.
