Budget 2024: Infra Sector Expects 30% Hike In Allocation, Says Vinayak Chatterjee
Chatterjee also suggested a reconsideration of the 28% GST on cement, a key component for infrastructure development.
The infrastructure sector is expecting a 30% increase in allocation from last year's full budget to Rs 13 lakh crore this year, according to Vinayak Chatterjee, founder of the Infravision Foundation. He highlighted the Union government's consistent focus on infrastructure via pump-priming measures in a bid to drive economic expansion.
"This government has continuously followed its stance. There is no doubt about maximum allocation to infrastructure," Chatterjee said in an interview to NDTV Profit. "Public expenditure on infrastructure is driving economic growth."
Chatterjee expects an increasing emphasis on budgetary allocation for the railways over roads, pointing out that the gap had been getting narrower. He stressed on the need to balance the focus towards the railway sector as road connectivity had seen significant improvements over the past two-and-a-half decades.
Vinayak Chatterjee (Source: NDTV Profit)
He also suggested a reconsideration of the 28% goods and services tax on cement, a key component for infrastructure development.
Chatterjee said allocation to green energy and emphasis on water storage would be critical to watch. He highlighted the importance of significant allocations for public works related to water, including cleaning rivers like the Ganga and water supply.
Chatterjee suggested that the crucial issue now was moving to transmission infrastructure because most of the solar and wind plants are in remote places. He also suggested the establishment of a green energy transmission fund via multilateral development banks as a beneficial step forward.
Focus on allocations for transmission infrastructure to evacuate the power and, equally importantly, on developing and encouraging storage.Vinayak Chatterjee
He said the government had already shown commitment in reducing the cost of logistics, saying that the National Logistics Policy was aimed at lowering the logistics costs by 5% of the gross domestic product.
On social infrastructure, Chatterjee also suggested the development of creative public-private partnership formats to attract private investment into the health and education sectors.
Chatterjee also cited the successful attraction of private capital, including foreign direct investments, in large airport projects. "(The) Indian middle class has shown that air travel is no longer a luxury," he said. "So, it's highly important to develop airports."
