Volvo Buses welcomed the Union Budget for 2014-15 presented today, which has emphasised on the future vision for cities in India, as well as the country on the whole. Volvo is committed to play its role in supporting modernisation of Indian cities by providing complete & sustainable transport solutions to make public transport an attractive option.
The government has allocated INR 50,000 crore towards urban infrastructure projects that will help in creating sustainable cities. The centre’s proposal to set up Industrial Smart Cities in seven locations is another initiative that will help in developing planned residential cities, while possibly decongesting some of the larger cities.
We hope that when the detailing is done, there is focus on aspects of urban development such as electromobility, sustainable transport solutions such as BRTS and decongestion of cities.
The focus on road safety with allocation of funds is a small step that will be essential in addressing the rising incidents on India’s roads. Another key feature of the budget proposals was the allocation of INR 37,800 crore towards development of better infrastructure – both for National and State Highways.
By way of other announcements in the Union Budget, the government has articulated a vision of a stronger nation – socially and economically – in the years to come. Volvo Buses looks forward to steps that will pave the way for more robust and sustainable development of the country.
“The Indian Union Budget presented by the Finance Minister this morning in Parliament is both progressive & fiscally prudent. It addresses a lot of concerns of many sectors, with focus on reviving economic activity & job creation.
The provisions such as investment allowance, push on infrastructure & manufacturing sectors, increase in FDI in certain sectors, deepening the debt market & advance ruling on transfer pricing, are some of the positive moves that will encourage investment and a regime of predictability on taxation.
Also, of particular significance is the announcement with regard to the mining sector, which has been languishing in the recent past. The planned changes in the MMDR Act will help encourage investment & promote sustainable mining practices.
However, what is a disappointment is the lack of correction in the inverted excise duty structure in the Commercial vehicle sector. The mismatch between the input and the output rates of excise duty has led to huge accumulations of credit in the system, which has had a crippling effect on the cash flows of manufacturers. In the twin contexts of the need to bring state-of-the-art automotive technology into India and the much needed socio-economic imperative of providing impetus to manufacturing in India, this inverted duty structure is becoming a big deterrent. This is making manufacturing of high technology products in India uncompetitive, which will indirectly also encourage the undesirable imports of fully built vehicles. We do hope that the Government will in the near future address this pressing issue”.
Mr Kamal Bali, Managing Director, Volvo India
The government has allocated INR 50,000 crore towards urban infrastructure projects that will help in creating sustainable cities. The centre’s proposal to set up Industrial Smart Cities in seven locations is another initiative that will help in developing planned residential cities, while possibly decongesting some of the larger cities.
We hope that when the detailing is done, there is focus on aspects of urban development such as electromobility, sustainable transport solutions such as BRTS and decongestion of cities.
The focus on road safety with allocation of funds is a small step that will be essential in addressing the rising incidents on India’s roads. Another key feature of the budget proposals was the allocation of INR 37,800 crore towards development of better infrastructure – both for National and State Highways.
By way of other announcements in the Union Budget, the government has articulated a vision of a stronger nation – socially and economically – in the years to come. Volvo Buses looks forward to steps that will pave the way for more robust and sustainable development of the country.
The provisions such as investment allowance, push on infrastructure & manufacturing sectors, increase in FDI in certain sectors, deepening the debt market & advance ruling on transfer pricing, are some of the positive moves that will encourage investment and a regime of predictability on taxation.
Also, of particular significance is the announcement with regard to the mining sector, which has been languishing in the recent past. The planned changes in the MMDR Act will help encourage investment & promote sustainable mining practices.
However, what is a disappointment is the lack of correction in the inverted excise duty structure in the Commercial vehicle sector. The mismatch between the input and the output rates of excise duty has led to huge accumulations of credit in the system, which has had a crippling effect on the cash flows of manufacturers. In the twin contexts of the need to bring state-of-the-art automotive technology into India and the much needed socio-economic imperative of providing impetus to manufacturing in India, this inverted duty structure is becoming a big deterrent. This is making manufacturing of high technology products in India uncompetitive, which will indirectly also encourage the undesirable imports of fully built vehicles. We do hope that the Government will in the near future address this pressing issue”.
Mr Kamal Bali, Managing Director, Volvo India
