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Below the Quote on Pre-Budget Expectation by Rajesh Ganesh, MD & CEO, Bajel Projects Limited

“The previous Union Budget set the infrastructure capex spending target at 3.4% of GDP, or Rs.11.1 lakh crores - the highest level to date. We expect even greater allocation toward infrastructure as India continues its journey to becoming a developed nation, i.e., Viksit Bharat by 2047.

The major issues in completing projects on time in the power sector are Right-of-Way (ROW) and Land Acquisition. As a key player in the power transmission and distribution sector, we anticipate that the upcoming budget will announce budgetary allocation towards creating digital land banks and single-window and time-bound forest/statutory clearances which will be essential for tackling critical issues like ROW and land acquisition.

 Another issue with completing projects within the budgeted costs is the exposure to equipment and commodities. We expect the budget to announce a reduction in import requirements and duties on vital raw materials and equipment such as aluminium, transformers, circuit breakers, and switchgear could help lower overall project costs.

 Additionally, to give a financial boost to Discoms, augmentation of the Revamped Distribution Sector Scheme (RDSS) and encouraging states to privatise Discoms could significantly reduce aggregate distribution losses. On the manufacturing front, it will be good to see schemes that promote exports of power equipment through PLI schemes, lowering of lending rates and additional depreciation incentives.

Expectations from the budget are high, and we are confident that the government will take steps to position the power sector for sustainable growth, aligning with India’s growth, energy transition, and infrastructure development goals.”

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