Union Budget 2018: How does it affect the Indian automobile Industry?
The first session of the Union Budget 2018 happened today where Finance Minister Arun Jaitley presented the proposed budget. Click here to know about the different updates that were announced today. While the Finance Minister covered most sectors, nothing about the Indian automobile sector was announced today. The Lok Sabha house has been adjourned to February 5, 2018 where the next session will take place. We believe the Finance Minister will announce new reforms concerning the automobile sector. Here are some of the points taken from Union Budget 2018 verbatim that will directly or indirectly affect the reach, sales and other aspects of the automobile industry in India. Stay tuned for a detailed analysis of the Union Budget 2018 that comes later in the day.
"Infrastructure is the growth driver of economy. Our country needs massive investments estimated to be in excess of Rs 50 lakh crore in infrastructure to increase growth of GDP, connect and integrate the nation with a network of roads, airports, railways, ports and inland waterways and to provide good quality services to our people."
To secure India's defences, we are developing connectivity infrastructure in border areas. Rohtang tunnel has been completed to provide all weather connectivity to the Ladakh region. Contract for construction of Zozila Pass tunnel of more than 14 kilometer is progressing well. I now propose to take up construction of tunnel under Sela Pass. For promoting tourism and emergency medical care, Government will make necessary framework for encouraging investment in sea plane activities.
Smart Cities Mission aims at building 100 Smart Cities with state-of-the-art amenities. I am happy to inform that 99 Cities have been selected with an outlay of Rs 2.04 lakh crore. These Cities have started implementing various projects like Smart Command and Control Centre, Smart Roads, Solar Rooftops, Intelligent Transport Systems, Smart Parks. Projects worth Rs 2350 crore have been completed and works of Rs. 20,852 crore are under progress. To preserve and revitalize soul of the heritage cities in India, National Heritage City Development and Augmentation Yojana (HRIDAY) has been taken up in a major way.
Our Government has scaled new heights in development of Road Infrastructure sector. We are confident to complete National Highways exceeding 9000 kilometers length during 2017-18. Ambitious Bharatmala Pariyojana has been approved for providing seamless connectivity of interior and backward areas and borders of the country to develop about 35000 kms in Phase-I at an estimated cost of `5,35,000 crore. To raise equity from the market for its mature road assets, NHAI will consider organizing its road assets into Special Purpose Vehicles and use innovative monetizing structures like Toll, Operate and Transfer (TOT) and Infrastructure Investment Funds (InvITs).
Foundation for the Mumbai-Ahmedabad bullet train project, India's first high speed rail project was laid on September 14, 2017. An Institute is coming up at Vadodara to train manpower required for high speed rail projects.
The system of toll payments physically by cash at road toll plazas is being fast replaced with Fastags and other electronic payment systems to make road travel seamless. Number of Fastags has gone up from about 60,000 in December, 2016 to more than 10 lakh now. From December, 2017 all class ''M'' and ''N'' vehicles are being sold only with the Fastags. The Government will come out with a policy to introduce toll system on ''pay as you use'' basis."
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