Synopsis
On February 3, a report indicated that India's infrastructure development plans are set to attract more private sector investment, particularly in the transport and logistics sectors, driven by favorable policies and financial support outlined in the Union Budget.Key Takeaways
- 10,000 crore allocated for PPP infrastructure development.
- 1.5 lakh crore interest-free loans for state infrastructure.
- Establishment of a Maritime Development Fund.
- New Asset Monetisation Plan to raise 10 lakh crore.
- Revamped shipbuilding policies to enhance competitiveness.
New Delhi, Feb 3 (NationPress) Strategic infrastructure initiatives are poised to encourage additional investments from the private sector aimed at enhancing the transport and logistics sector, as highlighted in a report released on Monday.
The Union Budget emphasizes a targeted approach toward the shipping industry and seeks to draw investments into India by offering exemptions and relaxations to non-resident entities and IFSC units on specific income, according to KPMG in India's report.
Among the initiatives is an allocation of Rs 10,000 crore designated for infrastructure advancement through the public-private partnership (PPP) model.
Additionally, a Rs 1.5 lakh crore interest-free loan will be extended to states to support their infrastructure capital outlay, as outlined in the Budget.
A new Asset Monetisation Plan has been introduced, aiming to generate Rs 10 lakh crore to encourage enhanced engagement from private sector corporations and the investment community.
A Maritime Development Fund will be established to finance up to 49 percent of project costs, with the remainder being supplied by the private sector or port trusts.
The revised ‘Ude Desh ka Aam Nagrik’ (UDAN) scheme has been launched to augment the connectivity outreach.
According to the report, the development of a greenfield airport in Bihar is anticipated to improve the state’s connectivity with the rest of the nation and generate employment opportunities.
The Budget proposes the establishment of a Maritime Development Fund with a funding corpus of Rs 25,000 crore aimed at long-term financing for the maritime sector. This fund will encourage competition within the industry, with the government contributing up to 49 percent of the total.
The shipbuilding Financial Assistance Policy will be revised to mitigate cost disadvantages, which will also involve Credit Notes for shipbreaking in Indian yards to foster a circular economy. The government anticipates significant demand arising from the Indian shipping market, which should be effectively addressed by domestic shipyards.
