Page 45 - Plastics News February 2017
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from R5,000 crore in the previous budget. – Construction and development of coastal roads of
around 2000 kms.
– Increase in allocation to Pradhan Mantri Awaas Yojana-
Gramin (PMAY-G) increased to R23,000 crore with a – Allocation to the Sagarmala Project increased from
view to complete one crore houses by 2019 for the R450 crore to R600 crore
houseless and those living in kutcha houses.
Impact on Companies:
– Affordable housing given infrastructure status.
– Improvement in ports infrastructure will result into
– Under the Scheme for profit-linked income tax improvement in turnaround time for ships arriving
deduction for promotion of affordable housing, at the Indian ports. Furthermore, focus on coastal
carpet area instead of built up area of 30 and 60 roads and transportation infrastructure will result
square meters will be counted. The 30 square meters into faster movement of cargo at ports, which will
limit will apply only in case of municipal limits of 4 augment improvement of cargo handling capacity
metropolitan cities while for the rest of the country at ports. This is expected to improve operational
including the peripheral areas of metros, limit of 60 performance of companies operating in port sector.
square meters will apply.
Impact on the Industry:
Impact on Companies:
– This is likely to ease the bottlenecks in the
– The finance minister’s proposals to boost investments transportation sector which is likely to result in
in irrigation and provide safe drinking water, via increased movement of cargo from the ports
various schemes like PMKSY, NRDWP and Micro
Irrigation Fund will create demand for plastic pipes – Under the budget allocation for highway sector,
and other irrigation systems. Affordable housing the government has identified construction and
and increased allocation to PMAY-G may see higher development of around 2000 kms of coastal roads. The
demand for steel pipes in structural applications increased focus especially on the coastal roads will
facilitate better connectivity of ports to the nearby
Impact on the Industry: areas
– With government of India focusing on agricultural – Increased allocation to the Sagarmala project would
productivity, increasing the area of cultivated land further benefit in upgrading the ports infrastructure.
under irrigation is of vital importance and these
initiatives will improve the long term demand for POWER
plastic pipes.
Proposals:
– Also, the focus is to provide piped water supply to
open-defecation free villages will also boost demand – No change in the MAT rates. Also, there is no extension
for pipes. of tax benefits under Sec 80IA applicable for projects
commissioned on or after April 1, 2017. However,
– Higher impetus to affordable housing could see an extension of MAT credit is now allowed to be carried
increase in interest from the private sector. As such, forward up to a period of 15 years instead of present
pipes and tubes with application in water supply and applicable 10 years.
sanitation could see better growth in short to medium
term. – Commitment for 100% village electrification by May
2018 and providing solar power (1000 MW) to 7000
PORTS railway stations.
Proposals: – Second phase of 20,000 MW of solar power park
development is to be taken up.
– Transportation sector (including Rail, Road and
Shipping) to R2,41,387 crore an increase of about – Reduction in various duties for solar tempered glass
12% as compared to the previous year. and parts/RMs used in the manufacture of solar
tempered glass for use in solar PV cells/modules,
solar power generating equipment or systems, etc.
45 F e b r u a r y 2 0 1 7 | Plastics News
