Budget 2014: Industry reactions to the new Union Budget

“Proposed move to provide exemptions to banks from CRR and SLR obligations by linking those to long-term infrastructure loans is a masterstroke and can prove to be a game-changer in the field of infrastructure financing. It will also help mobilising funds through issue of infrastructure bonds”- Hemant Kanoria, CMD, Srei Infrastructure Finance
“Targeting of Plan expenditure on infrastructure development particularly rural roads, national highways infrastructure and railways network expansion supplemented by PPP is expected to revive the investment cycle”
Seshagiri Rao, Jt MD & Group CFO, JSW Steel
“We were expecting the GST model to be given a nod but this did not happen since the government is still in consultation with different states. This would have been a huge boost for construction equipment manufacturers as it will reduce taxes on sales of equipment between states”
– A.M. Muralidharan, President, Volvo Construction Equipment

“The thrust on setting up newer industrial clusters is a step in the right direction” – Tushar Mehendale, MD, ElectroMech Material Handling Systems
“The budget has given the real estate sector the due importance, although our long standing demand for infrastructure status for the real estate sector and an exemption of service for real estate projects is still awaiting the government nod”- C Shekar Reddy, National President, CREDAI
“Specific measures relating to reduction in area for FDI and REIT’s will increase liquidity in the sector and as such reduce the dependence on the banking system”
Venkatesh Gopalkrishnan – EVP & CIO, Shapoorji Pallonji Real Estate
“Giving a CSR status for slum redevelopment programmes and pass-through status to REITs, are two major announcements by the finance minister that will strongly help in the revival of the real estate sector”
– Hariprakash Pandey, VP – Finance & Investor Relations, HDIL
“Housing loan rebate raised from Rs 1.5 lakh to Rs 2 lakh will encourage buying homes and give a push to the residential property market”
– Vvikas Aroraa, Director – Sales & Marketing, Runwal Group

7