Views on Budget 2023 – Quote by Mr. Aashit Shah, Partner at JSA (Law Firm)
“The government’s focus on capex and infrastructure development is evident from the current budget. This will provide several lending and investment opportunities. For example, an allocation of 75,000 crores towards transport infrastructure projects will aid in the transformation of this sector and attract more investments. Upgrading and bettering transportation infrastructure will ease trade and promote the growth of business within the country. The proposed voluntary settlement scheme for awards against government entities may help infrastructure companies, who are the beneficiaries of such awards. Further, the deployment of Rs. 10,000 crores in an Urban Infrastructure Development Fund for creating urban infrastructure in Tier 2 and Tier 3 cities will create more opportunities for investment in these cities. The extension of the 50-year interest-free loans to states is also subject to a caveat that the amount must be used for capex and therefore, will enhance capex at the state level.
The proposed renewable energy transmission line from Ladakh, viability gap funding for batteries, and a proposed green credit program demonstrate the Government’s emphasis on green growth and will accelerate the renewable energy sector. Another positive move in the budget is to permit acquisition financing from IFSC branches. This will provide more opportunities for banks to fund M&A transactions.”-Mr. Aashit Shah, Partner at JSA