Science & Environment
Budget 2024 expectations: Ramp up private participation in airports…
Budget 2024 expectations: Union Budget 2024 to be presented by Finance Minister Nirmala Sitharaman on July 23 should look at increasing the private sector participation in airports and Indian Railways projects, says Kuljit Singh, Partner, EY India.
Asked about his key expectations from the Budget 2024, he told TOI, “India’s upcoming budget must address critical infrastructure reforms to propel economic growth and sustainability.Key expectations include ramping up private participation in airports and railways by inter-alia privatizing existing airports, privatizing or listing Dedicated Freight Corridor (DFC) corridors.”
Also Check | Full Coverage on Budget 2024
“There is also a pressing need to reduce government stakes in rail-related entities like IRCON, IRCTC etc, thereby enabling the government to recycle freed capital,” Kuljit Singh added.
Kuljit Singh also lists out the key focus areas for FM Sitharaman for Budget 2024:
Asked about his key expectations from the Budget 2024, he told TOI, “India’s upcoming budget must address critical infrastructure reforms to propel economic growth and sustainability.Key expectations include ramping up private participation in airports and railways by inter-alia privatizing existing airports, privatizing or listing Dedicated Freight Corridor (DFC) corridors.”
Also Check | Full Coverage on Budget 2024
“There is also a pressing need to reduce government stakes in rail-related entities like IRCON, IRCTC etc, thereby enabling the government to recycle freed capital,” Kuljit Singh added.
Kuljit Singh also lists out the key focus areas for FM Sitharaman for Budget 2024:
- The declaration of the electric vehicle (EV) sector as infrastructure and the extension of benefits under the
FAME scheme are imperative steps for enhancing EV penetration. - Recognizing smart meters as essential infrastructure will enhance efficiency in energy management. Moreover, improving electricity distribution, particularly through innovative strategies such as central government takeover of consistently poorly performing state discoms, is crucial given the preference against privatization in India.
- To stimulate the
green energy sector , viability gap funding should be provided to encourage the production of green hydrogen and biofuels. - Rebalancing tax structures for domestic investors, considering disparities with foreign investors in same infrastructure investments, is essential for equitable growth.
- Furthermore, alleviating pressure on banks from infrastructure debt can be achieved by establishing a new entity to purchase bonds from greenfield infrastructure projects and aggregating them for retail and institutional investors.
- Addressing cash flow challenges in infrastructure projects is paramount. Allowing infrastructure projects to distribute all available cash to investors, irrespective of accounting profits or regulatory restrictions, will boost investor confidence and enhance project viability.
