The Union finance minister Ms Nirmala Sitharaman presented the Union Budget for 2020-21 on February 1, 2020. Here are some reactions received from the industry:
Carbon emission reduction
The allocation of Rs.22,000 crore for the power and renewable energy sector will help India in reducing the carbon emissions as per our commitment under the Paris Agreement on climate change. Solar energy generation will be boosted by setting up solar-power capacity alongside the rail tracks as India has the fourth largest rail network in the world. The concept of prepaid energy meters to save on losses being incurred by the distribution utilities may get sorted with the replacement of conventional energy meters with the prepaid ‘smart meters’ in the next three years as announced by the Finance Minister.”
—R.K. Chugh, President, IEEMA
Early resolution of contract disputes
The announcement to strengthen the framework related to contracts act is a good initiative as thousands of contract claims and arbitration cases are pending for realization for a very long period. I feel that the measures announced for the infrastructure development, easing of norms, tax benefits along with other plans will prove to be beneficial in the long run towards creating a $5 trillion economy in the next 5 years’ time.
—Sunil Misra, Director General, IEEMA
Fillip to infrastructure
Union Budget 2020’s infra focus is expected to provide a significant fillip to KEC. Allocation towards power & renewable energy and transport infrastructure, upgradation of stations & developing solar in railways, setting up of 100 new airports, five new Smart cities and linking 1 lakh gram panchayats with BharatNet augurs well for our businesses.
—Vimal Kejriwal, MD & CEO, KEC International Ltd
Infrastructure push
The Big Infrastructure Push in the Union Budget 2020 is a big step towards boosting the economy and the sector. Government announced a huge spend over 102 trillion rupees ($1.44 trillion) on roads, ports, airports, irrigation and other infrastructure over the next five years. This is definitely a demand revival step and will create an environment for sustainable growth in the sector. This budget is a big growth driver and proposes to step up the construction and MEP industry sectors in the country. I am definitely positive that this budget is going to work for the MEP sector.
—Prakasan, COO, Sterling & Wilson, MEP Business
Emphasis on Smart Cities
iRAM would be standing with Mrs. Sitharaman’s initiative to make the industry and commerce sector more technologically enabled with an emphasis on building Smart Cities, as well as the reforms that will be added in the development and infrastructure policies. We will be working with the government to drive the Smart City growth initiative through deployment of our various IoT based smart systems. Furthermore, the budget allotted for the Infrastructure and renewable sector will aim at creating a more holistically developed, technologically driven future of the country, and iRAM Technologies, as an IoT based company, hope to keep up to par and additionally support the government in creating a New, Smart India.
—Udaya Bhaskar Rao Abburu, CEO & Managing Director, iRam Technologies
Boost to solar energy
The Rs. 20,000-crore ($2.8 billion) allocation for the renewable energy sector will help India in reducing the carbon emissions as per our commitment under the Paris Agreement on climate change. Solar energy generation will be boosted by setting up solar-power capacity alongside the rail tracks as India is having the 4th largest rail network in the world. The concept of prepaid energy meters to save on losses being incurred by the distribution utilities may get sorted with the replacement of conventional energy meters with the prepaid ‘smart meters’ in the next three years as announced by the Finance Minister.
—Subhash Sethi, Chairman, SPML Infra Ltd
Statement of intent
The Union Budget 2020 is a balanced and pragmatic statement of intent. Finance minister in her speech has attempted to address the trust deficit across a host of sectors. She has assured stock market investors by abolishing dividend distribution tax , addressed concerns of start-ups with respect to ESOPS and in the renewable energy sector through strengthening of contracts act and lowering of Corporate tax rate for new energy companies. While there was pressure to move away from fiscal responsibility the government has chosen to walk a middle path allowing for an acceptable increase in fiscal deficit while putting some extra money in the hands of tax payers.
—Sumant Sinha, CMD, ReNew Power
Towards Greener India
Power sector is central to India’s transition to low-emissions development and integral part of the country’s development. The government’s proposed outlay of Rs. 22,000 crore for power and renewable energy sector for Union Budget 2020-21 compared to Rs 15,874 core last year, is a welcome move which will surely take the Green India Mission to a new horizon. This showcases the government’s commitment to establish India as one of the global leaders in clean energy– a welcome direction as it will create employment, and cut India’s emission footprint.
—Ratul Puri, Chairman, Hindustan Power
Technology enabler
We welcome the budget. Our honourable standing Finance Minister Nirmala Sitharaman announced the series of measures in Budget 2020-2021 to promote the power and Infrastructure sector, and we as a company are looking forward to its future scope. iRAM would be standing with Mrs. Sitharaman’s initiative to make the industry and commerce sector more technologically enabled with an emphasis on building Smart Cities, as well as the reforms that will be added in the development and infrastructure policies. We will be working with the government to drive the Smart City growth initiative through deployment of our various IoT based smart systems. Furthermore, the budget allotted for the Infrastructure and renewable sector will aim at creating a more holistically developed, technologically driven future of the country, and iRAM Technologies, as an IoT based company, hope to keep up to par and additionally support the government in creating a New, Smart India.
—Udaya Bhaskar Rao Abburu, CEO & Managing Director, iRam Technologies
Impetus to power & infra
The annual budget announced by the FM has given special impetus to the power and infrastructure sector and allocating Rs 22,000 crore for renewable and power sector is going to push for faster development and growth across sector. The announcement made by FM to replace energy meters with pre-paid smart meters will further help in complete digitization of the whole system and will help in bring about more financially healthier utilities. The FM has urged state governments to implement smart meters in the next three years and HPL being one of the leading manufacturers of smart meters sees this as a huge opportunity. In addition, the implementation of five Smart city projects in PPP mode will give more opportunities to the private companies.
—Gautam Seth, Joint-Managing Director, HPL & Electric Power Ltd.
Clarity awaited on solar equipment
The budget had a clear intent on fulfilling India’s COP 21 commitments in a sustainable manner. However, the budget fell short of addressing fiscal conditions of state discoms, and we hope that the Ministry of Power and MNRE together engage with state governments to address this issue. Details on levying 20 per cent Basic Custom Duty on import of solar cells and modules are still awaited in order to comment on the impact.
—Gyanesh Chaoudhary, Managing Director, Vikram Solar
Solar revolution
“It is very encouraging for us at GOGLA trying to drive the Solar revolution that the FM has recognised its powerful impact as a tool to change lives and livelihoods. Our forthcoming report Powering Opportunities in South Asia demonstrates exactly this in India. We welcome the move to support around 20lakh farmers for installing standalone solar pumps on fallow land. This move alone can boost growth all around.”
—Viraj Gada, India Regional Representative GOGLA [Global Association for the Off-grid Solar Energy Industry]
Featured photograph sourced from www.jagran.com
