Budget 2019-20: FICCI in its pre-budget memorandum has suggested FM Sitharaman and the Centre that it should allow a concession arrangement on design, build, finance, operate and transfer (DBFOT) basis in the Union Budget.
Budget 2019 India: Expectations from the Modi 2.0’s first Union Budget are quite high. Industry bodies have suggested that the Finance Minister Nirmala Sitharaman must focus on spending on infrastructure. Since coming to power in 2014, Prime Minister Narendra Modi, during his first tenure, showed much intent to create a network of Metro Rail Systems across India. Federation of Indian Chambers of Commerce and Industry (FICCI) wants the central government to allow the benefit of the claim of depreciation in case of Metro Rail systems.
FICCI in its pre-budget memorandum has suggested FM Sitharaman and the Centre that it should allow a concession arrangement on design, build, finance, operate and transfer (DBFOT) basis in the Union Budget.
The central government in its ‘Metro Rail Policy 2017’ termed construction of new Metro Rail systems through DBFOTs (Design-Build-Finance-Operate- Transfer) is one broad models of Public Private Partnership (PPP). It has stated that DBFOT is a way forward for the PPP model in Metro Rail. At present metro rail is operational in Delhi, Mumbai, Noida, Gurgaon, Kochi, Kolkata, Chennai, Bengaluru, Hyderabad, Jaipur, Lucknow, Ahmedabad, and Nagpur. Cities like Navi Mumbai, Pune, Agra, Bhopal, Indore, Patna, Meerut, Guwahati, Chandigarh, Vijayawada and Surat will have metro networks.
Apart from the Metro Rail systems, FICCI wants customs duty on rope propelled transport solutions for urban transport to be brought down to 5 per cent in Budget 2019 on July 5. In its pre-Budget memorandum, FICCI has said basic customs duty applicable for rope propelled transport solutions is 10 per cent. Further, basic customs duty applicable for rope propelled transport solutions for tourism stands at 5 per cent under rules laid down by the Department of Tourism.
Terming rope propelled urban transport as a solution to reduce congestion and pollution in urban areas, FICCI has recommended that reduction of basic customs duty to 5 per cent in Budget 2019 will benefit all sectors as Rope propelled urban transport solutions have an application in several initiatives taken by the government such as ‘Metro Policy 2017’, ‘Smart City Projects’, ‘Last Mile Connectivity’, Mass Rapid Transit Systems (MRTS) for non-metro towns in India.