Mumbai: The government's thrust on the infrastructure sector through increased allocation in almost all verticals was welcomed by industry leaders.
"The Budget clearly shows that there is a thrust on infrastructure on the part of the government. There is also thrust on rural electrification and irrigation. This is a good Budget for the infrastructure industry," Unity Infraprojects Chief Operating Officer Yogen Lal said.
For urban infrastructure development, the government has increased allocation for the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) to Rs 12,887 crore in 2009-10, marking an increase of 87 per cent over the previous year.
IRB Infraprojects Chairman and Managing Director V.D. Mhaiskar said that the government has done a "good balancing " act with the Budget and its intention to spend nine per cent of GDP by 2014 from 4.5-5 per cent now would definitely augur well for the infrastructure sector.
The move allowing the Indian Infrastructure Financial Corporation Ltd (IIFCL) to play a bigger role on refinancing would help the infrastructure sector as well. The Budget proposed that IIFCL would evolve a financing mechanism for giving increased support to infrastructure projects.
Source: PTI
