The Union Budget 2017 is expected to give an impetus to infrastructure sector in order to boost industrial growth amid global slowdown and lower corporate spending at home.
A Business Standard report said Finance Minister Arun Jaitley might announce a third straight year of record capital spending, which could be 12-14% higher than the 2016-17 Budget Estimates of Rs 2.47 lakh crore. That would put the 2017-18 capital expenditure at nearly Rs 2.8 lakh crore.
From more avenues to fund stuck projects, tax holidays to discount in lending rates, below are five things that Sandeep Upadhyay, Managing Director & CEO, Centrum Infrastructure Advisory expect from the Budget 2017:
1) Given the reluctance of banks to fund infrastructure projects due to increasing non-performing assets (NPAs) in the sector it is imperative that we should have more number of specialised infrastructure financing institutions which as of now is just confined to entities like IIFCL, IREDA, PFC and REC etc. These specialised financing institutions could serve as the much needed complimentary sources of funding infrastructure projects needing long-term funding at subsidised rate.