Better Connectivity between Ports and Manufacturing Facilities would be required once the GST is implemented

The feeder routes are the existing railway routes, on which much work is required

MUMBAI: The Finance Minister has made a number provisions for the port and logistics sector, including plans for 2,000-km coastal roads in the Union Budget but experts feel that more details about the GST roadmap and its impact on the sector should have been shared with the market.

GST implementation

Arif Patel, Vice-Chairman of Patel Roadways, said the budget provisions for logistics sector should have been synchronized with the implementation of GST. If the GST does not get implemented, it will have repercussions on the sector, he warned.

Tulsiani said the Budget has been focused on rural and agriculture development, which will spur the consumption in the country. This will bring new businesses to logistics companies. But better connectivity between the ports and various manufacturing facilities would be required once the GST gets implemented. Therefore, there should have been higher allocation for national highways.

Freight corridors

There should have been better clarity on Dedicated Freight Corridor (DFC) project and the status on the feeder routes, which will service the DFC. The feeder routes are the existing railway routes, on which much work is required. Capital outlay also not been defined for this project, he said.

Patel said that provisions for port and coastal road connectivity has been made but till date the road leading to the JNPT port is congested. In spite of JNPT being one of the largest port in the country, the port still faces traffic bottlenecks. Therefore, the government has to walk the talk as far as infrastructure development is concerned.

Welcome Initiatives:

“The industry was keen to see the representation the rail sector would get in this combined Budget, the first in independent India. The Finance Minister did a good job focusing on key and strategic measures for the railway sector. The increased Budget allocation to railways, focus on safety through the ‘Rail Sanraksha Kosh’, an enhancement of throughput are very welcome measures. Additional resources will come to the transport sector basis the announced measures of modifying the metro policy, PPP operation of tier two cities and through the ‘Multi Model Transport Approach’,” said Tilak Raj Seth, Head Mobility, , Siemens Limited and CII Chairman.

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