FICCI National committee on infrastructure welcomes higher budget allocation for roads and infrastructure
FICCI’s National Committee on Infrastructure has welcomed the announcement by Union Finance minister Arun Jaitley of allocating Rs 97,000 crore for road infrastructure including additional amount of Rs 15,000 crore for National Highway Authority of India (NHAI) for better roads in the Union budget for FY 2016-17 as it will help in better connectivity.
“We also welcome the move by the Finance Minister allocating Rs 55000 Crore for roads and highways alone. Allocation of Rs Rs.19,000 crore for the rural roads programme under the Pradhan Mantri Gram Sadak Yojna for rural development in the budget , will have a massive impact on rural development and connectivity “ Said Mr K.K.Kapila, co-Chairperson FICCI’s National Committee on Infrastructure, He is also Chairman, Global road safety body International Road Federation .
“ The road infrastructure sector was moving very slowly in past few years due to delay in decision making and disputes resulting in heavy loss to contractors in form of blocking of funds as well as paying interest on loans. The allocation of funds will help the road sector to grow faster and deliver projects on time. .” “The announcements in the budget of new road projects will give further boost to economy, generate employment and help country build better infrastructure” he added.
The Total outlay for infrastructure which stands at Rs 2,21,246 crore will give boost to infrastructure projects in the country. India ’s infrastructure deficit is enormous and huge new investments were needed in the infrastructure sector over a five-year period, to improve connectivity and boost energy supplies. The lack of infrastructure, evident across India in sectors including aviation, ports, roads and highways, railways, power and telecommunications, has stunted growth levels in recent years, preventing the economy from realising its full potential.” Mr K .K. Kapila, Co-chairman, FICCI ‘s national committee on Infrastructure and Chairman, International Road Federation (IRF).
“Improvement of transport, road and rail sector will boost the economy of the country as good connectivity always helps the economy”said Mr Kapila.