Page 42 - Plastics News February 2017
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FEFAETAUTURRESES
However, given the deterioration in capital adequacy Impact on Companies:
and asset quality parameters of PSBs, this amount will
be inadequate to meet the capital needs of PSU Banks – Increased allocation towards various infrastructure
for growth and Basel III capital adequacy compliance. projects is expected to result in increased order inflow
to the construction companies
– It will help in improving bank’s profitability marginally
by reducing tax liability. Impact on the Industry:
– Non-scheduled cooperative banks will no longer have – The continued focus of the government on
to pay taxes on interest income which is not realised. infrastructure development through increased
This will improve their profitability marginally. allocation towards roads, railways, irrigation, etc.
would be beneficial for the construction industry.
– The move will help government’s thrust on digital Also, focus of the government on promoting
economy. However, the impact is neutral for the affordable houses will augur well for the industry.
banks.
– Measures taken for faster resolution of issues in
– This will increase demand for home loans. projects under PPP model will encourage participation
of private sector through this model.
– This move will reduce demand for mid/large ticket
home loans taken for investment purpose. FERTILISERS
– It will strengthen the security of financial sector that Proposals:
is facing incremental cases of financial and cyber
frauds. – The target for agriculture credit is fixed at R10 lakh
crore & the total allocation for rural, agricultural and
CONSTRUCTION allied sectors for 2017-18 is R1,87,223 crore, which
is 24% higher than last year
Proposals:
– The government will issue soil health cards and will
– Total outlay of R396,135 crore planned for setup a mini lab in Krishi VigyanKendras. R368 crore
infrastructure in 2017-18. has been provided for National Project on Soil Health
and Fertility. Besides, 2,000 model retail outlets of
– The outlay on roads increased from R57,976 crore in Fertiliser companies will be provided with soil and
budget 2016-17 to R64,900 crore in budget 2017-18. seed testing facilities during the next three years.
In all, 2,000 km of coastal connectivity roads have
been identified for construction and development. – A dedicated micro-irrigation fund will be set up by
NABARD to achieve the goal of ‘Per Drop More Crop’.
– The expenditure of Railways stands at R131,000 crore Its initial corpus will be R5,000 crore and the Long
which includes R55,000 crore to be provided by the Term Irrigation Fund already set up in NABARD to be
Government. augmented by 100% to take the total corpus of this
Fund to R40,000 crore.
– For transportation sector as a whole, including
rail, roads and shipping, R241,387 crore has been Impact on Companies:
proposed.
– The easier farm credit would encourage farmers for
– Addition of R20,000 crore to corpus of Long-Term balanced usage of fertilisers and stabilise demand of
Irrigation Fund set up in NABARD. This will take the fertilisers. The move towards reducing the skewed
total corpus of the Fund to R40,000 crore. usage of nitrogen nutrient (urea) and soil productivity
would lead to increase in agriculture yield and also
– Higher investment in affordable housing. Increase to increase demand of non-urea (P&K) fertilisers.
in the allocation for Pradhan Mantri Awaas Yojana- DBT on fertilisers shall improve the quality of service
Gramin from R15,000 crore in 2016-17 to R23,000 delivery.
crore in 2017-18.
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