Union Budget reaction - Mr. Amitabh Das Mundhra, Director, Simplex Infrastructures Ltd

"We welcome the slew of incentives announced by Hon'ble Finance Minister, which spelt out robust plans & growth oriented measure by the government for the infrastructure sector. Giving clear direction towards boosting investments in the sector, the Minister has announced its intent of raising Rs. 50 lakh crore in the 12th five year plan. We as an infrastructure company welcome Hon'ble Ministers proposal for the road sector, from targeting 8,800 km of road projects to announcing full exemption on imported equipments for road construction projects, this will have a hugely positive impact on the sector. Further, increased allocation of 14% towards the NHDP is well appreciated.

The Private sector were facing further constraints in the past for lending from the banks, the announcement of liberalizing external commercial borrowings will ensure smooth access to the funds & provide us the impetus to bid for more projects. Doubling of infrastructure bonds from Rs 30,000 to Rs 60,000 cr is a well thought out move for mobilizing the resources in the sector.

The only dampener for the infrastructure sector would be the increase in the service tax from 10 - 12% & and hike in excise duty to 12%, this negatively affects the growth prospects of the sector and can further result in higher costs for us."

Source : Equity Bulls

Keywords