Coastal Shipping to be promoted through PPP mode with Viability Gap Funding

States to be supported in replacing old vehicles

Cont’d. from Pg. 3

This Budget builds on India’s focus on green growth. This was stated by Union Finance & Corporate Affairs Minister Smt Nirmala Sitharaman while presenting the UnionBudget2023-24intheParliamentheretoday.

CoastalShipping

Speaking in line with green growth, Smt Sitharaman proposed that coastal shipping will be promoted as the energy efficient and lower cost mode of transport, both for passengers and freight, through PPP mode with viability gapfunding.

VehicleReplacement

The Finance Minister also mentioned that the states will be supported in replacing old vehicles and ambulances.Apartof theState’s outlayof fiftyyearloanto be spent on capital expenditure is also linked or allocated for scrapping old government vehicles as one of the seven purposes. Smt Sitharaman further stated that replacing old polluting vehicles is an important part of greening our economy. In furtherance of the vehicle scrapping policy mentioned in Budget 2021-22, adequate funds have been allocatedtoscrapoldvehiclesoftheCentralGovernment.

NEW DELHI: Hailing the Union Budget, Dr A Sakthivel, President, FIEO said that the budget has focused on growth potential of theIndianeconomy byfocusing oninvestment & infrastructure to help the country to remain as a fastest growing economy as projected by the international institutions. Dr Sakthivel said that many of the changes in the customs duties will help to provide competitiveness to manufacturing and exports besides attemptingimportssubstitution.

Various initiatives taken to encourage investment including increase in capital investment outlay by 33% to Rs 10 lakh crore, 50 years interest free loan to States to incentiviseinfrastructureinvestment,highestevercapital outlay for Railways, 100 infrastructure projects in port, coal, steel, fertilizer andurban infrastructure intier-IIand III cities through Urban Infrastructure Development Fund will have a spin off effect on economy and employment.

The sharp cut in personal income tax and encouragement to savings will add to the purchasing power adding to the demand including of housing which will make our economy much more resilient during such challengingtimes.

The Budget focuses on Ease of Doing Business by removal of large number of compliances converting over 3400 legal provisions into decriminalisation and amending 42CentralActs.

The reduction in duty on denatured ethyl alcohol and crude glycerine will help the downstream users in the chemical sector, reduction in duty on key inputs for producing shrimp feed will help the marine exports as will be the dropped in duty on seeds for manufacturing lab grown diamonds and R&D grant for the same to facilitate gems&jewelleryexports.

ThesettingupofUnityMallinStatesforpromotionand sale of One District One Product, GI products and handicraft goods will help in showcasing of such products for benefits of artisans, craftsman and farmers. However, we need to put such stores at the international airports also to encourage global visibility of such productssaidDrSakthivel.

Appreciating the launch of Agri Accelerator Fund for Agri Start-ups and Innovators in theruralareas,setting upofIndianInstitutes ofMilletand special window under PM Matsya Sampada Yojana for pushing agriculture exports, President FIEO said that the same needs to be supplemented with a revamped Transport and Marketing Assistance (TMA) scheme looking into the supply side disruptions and logistics challenges.

The increase in the allocation for the Interest Equalization Scheme from Rs 2376 crore in 2022-23 to Rs 2932 crore in 2023-24, up by 23%, will help in supporting exports particularly by MSMEs and may result in increasing the subvention support as demanded by the exporters in view of rising interest rates observed FIEO Chief.

Dr Sakthivel said that while the increase in allocation for the MAI Scheme from Rs 160 crore in 2022-23 to Rs 200 crore in 2023-24 is a welcome one but this may not be adequateastheglobaltradeshowsareincreasingly giving opportunities for showcasing which needs to be exploited. He reiterated that a planned scheme for aggressive overseas marketing may be notified with a sizable corpus toencourageexporterstoshowcaseglobally.