Moneycontrol Bureau
Finance Minister P Chidambaram has announced 3000 kms of road projects in 2013-14 in various states including Gujarat, Maharashtra, Rajasthan and Andhra Pradesh.
He also said committees will be set up to fast- track new projects and even those that were stalled due to technical reasons. He also said finance will be available at lower cost which will lease interest burden for the infra sector. For the purpose, infra debt funds will be encouraged.
He further said a regulatory body will be set up to clear pending disputes related to land acquisitions and environmental hurdles. The regulator will also address various issues faced by developer and also review NHAI (National Highways Authority of India) performance and policies.
"While every sector can absorb new investment, it is the infrastructure
sector that needs large volumes of investment. The 12th Plan projects an investmentof USD 1 trillion or Rs 55,00,000 crore in infrastructure, said the minister while reading out the Budget document.
The Plan envisages that the private sector will share 47 percent of the investment. Besides, we need new and innovative instruments to mobilise funds for this order of investment, he said.
Companies like IRB Infra, Ashoka Buildcon, GMR and GVK will benefit as they will now have access to low cost funds.
This is what the sector has expected from the Union Budget 2013-14 Regulatory changes
The government should look at regulatory changes to improve funding scenario in the sector.
There is a need to support infrastructure companies with high debt exposure seeking financial re-structuring
Finance opportunities
There should be dedicated infra debt fund, attracting foreign investment which to a large extent would solve the current asset liability mismatch by domestic banks. Refinancing options
Refinancing of existing rupee debts through cheaper external commercial borrowings should be allowed without any ceiling. Tax incentives
Eased funding norms, tax incentives, and increasing public sector spending into the sector. Time-bound clearances
Corporates seek progress on land acquisition bill and also want measures to improve fuel availability, and time-bound clearances for projects.
Fast track flagship infrastructure projects like Western and Eastern Freight Corridors.
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