Budget 2017 -18: Shriram Properties reactions on Jaitley’s speech in Lok Sabha

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NEW DELHI (INDIA):Shriram Properties Managing Director M. Murali said that this a well balanced, mixed and a progressive Budget coming in the wake of series of reforms which aimed at increased transparency, elimination of corruption and growth of digitalisation. The budget reflects the efforts of the Government to continue the reforms, yet, keeping in mind the welfare of the weaker section of the society. Focus on farmers and rural spending to encourage rural employment is most welcome, as India being basically an agrarian economy.

“The budget shows that we are on path of fiscal consolidation – fiscal prudence without compromising on public spending – with Fiscal deficit pegged at 3.2%. Infrastructure allocation of Rs 39,6000 crore shows the concern of the Government for suffering infrastructure development in the country,” he said.

“Granting infrastructure status to affordable housing will provide a big boost towards accomplishing Housing for All Mission. There shall be considerable increase in volume of construction activities across the country. Other reliefs in terms of project construction period, tax reliefs, definition of affordable housing size will also go a long way,” said M. Murali.

“Proposal to build 1 crore houses to people who live in Kuttcha environment is not only a big social step to address the problems of the urban poor but also an economic step in as much as housing development sector in India is always employment and job intensive,” said Murali.

“Corporate tax sobs for MSMEs will help large number of small corporates to enhance their level of operation and activities. MSMEs, is thus encouraged to come into the formal sector. Decision to abolish FIPB is positive step to ease foreign investment. Change capital gain norms is another booster for real estate investments,” he said.

“Focus on greater stability for financial sector is an another welcome move. New laws to Confiscate assets of loan defaulters / economic offenders is a big step forward although the success will depend upon the implementation,” he added.

“It is heart warming that ‘Honouring the Honest’ is the theme of not only the Budget but also of the Government .Over all, the budget provisions prove the objectives of the Government –namely, “Transform, energise and clean India,” said Murali.

Today, the Union Minister for Finance and Corporate Affairs, Arun Jaitley while presenting the General Budget 2017-18 in Parliament today said that affordable housing will now be given infrastructure status, which will enable these projects to avail the associated benefits,”

“The National Housing Bank (NHB) will refinance individual housing loans of about Rs. 20,000 crore in 2017-18. Thanks to the surplus liquidity created by demonetisation, the Banks have already started reducing their lending rates, including those for housing,” said Jaitley.

The Finance Minister Jaitley in his Budget Speech said that in addition, interest subvention for housing loans has also been announced by the Prime Minister Narendra Modi.

Total allocation for Infrastructure Development stands at Rs. 3,96,135 crores in 2017-18

Jaitley while presenting the General Budget 2017-18 in Parliament today informed that the total allocation for infrastructure development in 2017-18 stands at Rs. 3,96,135 crores. In the road sector, the Budget allocation has been stepped up for Highways from Rs. 57,976 crores in BE 2016-17 to Rs. 64,900 crores in 2017-18. Further, 2,000 kms of coastal connectivity roads have been identified for construction and development to facilitate better connectivity with ports and remote villages.

The Finance Minister,Jaitley in his Budget Speech, stated that the total length of roads, including those under Pradhan Mantri Gram Sadak Yojana (PMGSY), built from 2014-15 till the current year is about 1,40,000 kms which is significantly higher than previous three years. Further, Shri Jaitley informed that a specific programme for development of multi-modal logistics parks, together with multi modal transport facilities, will be drawn-up and implemented that will make our economy more competitive.

Speaking on upgradation of Civil Aviation infrastructure, Jaitley said that the Select airports in Tier 2 cities will be taken up for operation and maintenance in the PPP mode. Further, Airport Authority of India Act will be amended to enable effective monetization of land assets. The resources, so raised, will be utilized for airport upgradation. For transportation sector as a whole, including rail, roads, shipping, the Budget provides Rs. 2,41,387 crores in 2017-18. This magnitude of investment will spur a huge amount of economic activity across the country and create more job opportunities, the Finance Minister said in his Budget speech.

Calling Telecom sector as an important component of the infrastructure eco-system, Shri Jaitley noted that the recent spectrum auctions have removed spectrum scarcity in the country. This will give a major fillip to mobile broadband and Digital India for the benefit of people living in rural and remote areas. Further, for the BharatNet Project, the allocation has been stepped up to Rs.10,000 crores in 2017-18 and 1,55,000 kms of Optical Fiber Cables have been laid.

Jaitley informed that by the end of 2017-18, high speed broadband connectivity on optical fiber will be available in more than 1,50,000 gram panchayats, with wifi hot spots and access to digital services at low tariffs. A DigiGaon initiative will be launched to provide tele-medicine, education and skills through digital technology, he added.

For strengthening our Energy sector, the Government has decided to set up Strategic Crude Oil Reserves. In the first phase, 3 such Reserve facilities have been set up and in the second phase, it is proposed to set up caverns at 2 more locations, namely, Chandikhole in Odisha and Bikaner in Rajasthan. This will take the country’s strategic reserve capacity to 15.33 MMT. Further, the Finance Minister, in his Budget speech, proposed to create an integrated public sector ‘oil major’ which will be able to match the performance of international and domestic private sector oil and gas companies. In solar energy, the second phase of Solar Park development is proposed to be taken up for additional 20,000 MW capacity, Jaitley added.

The Finance Mini9ster Shri Jaitley further stated that the Government is creating an ecosystem to make India a global hub for electronics manufacturing. Over 250 investment proposals for electronics manufacturing have been received in the last 2 years, totaling to an investment of Rs.1.26 lakh crores. A number of global leaders and mobile manufacturers have set up production facilities in India, hence the Finance Minister said that allocation for incentive schemes like M-SIPS and EDF have been exponentially increased to an all-time high of Rs. 745 crores in 2017-18.

Further, a new and restructured Central scheme, namely, Trade Infrastructure for Export Scheme (TIES) will be launched in 2017-18 to focus on our export infrastructure in a competitive world.