DELHI (Metro Rail News): Union Finance Minister Mrs. Nirmala Sitharaman tabled Union Budget-2022 in the Lok Sabha on February 01, 2022. Beginning her presentation of the budget by expressing empathy with those who have been affected by the adverse health and economic effects of the COVID-19 pandemic, the FM said that India’s economic growth in the current year is estimated to be 9.2 per cent, the highest among all large economies. She also said that Union Budget 2022-23 seeks to lay the foundation and give a blueprint of the economy over the next 25 years. This is the sixth combined budget since the Rail Budget was merged with the Union Budget in 2017.
As a part of Atmanirbhar Bharat, the Finance Minister stated that 2,000 km of the rail network will be brought under the indigenous world-class technology KAWACH.
Key takeaways for the Metro & Railway sector:
- Railways will develop new products and efficient logistics services for small farmers and Small and Medium Enterprises, besides taking the lead in the integration of Postal and Railways networks to provide seamless solutions for the movement of parcels.
- ‘One Station-One Product’ concept will be popularized to help local businesses & supply chains.
- As a part of Atmanirbhar Bharat, 2,000 km of network will be brought under Kavach, the indigenous world-class technology for safety and capacity augmentation in 2022-23.
- Four hundred new-generation Vande Bharat Trains with better energy efficiency and passenger riding experience will be developed and manufactured during the next three years. These new trainsets are going to be made of light-weight aluminium, as opposed to steel, making each around 50 tonnes lighter in weight, consuming much less energy than their steel counterparts.
- One hundred PM GatiShakti Cargo Terminals for multimodal logistics facilities will be developed during the next three years. Mass Urban Transport including Connectivity to Railways.
- Innovative ways of financing and faster implementation will be encouraged for building metro systems of appropriate type at scale.
- Rs 19,130 crore for all metro projects in the country
- Multimodal connectivity between mass urban transport and railway stations will be facilitated on priority. The design of metro systems, including civil structures, will be re-oriented and standardized for Indian conditions and needs.
Here is how the industry leaders reacted to the Union Budget 2022 announced by the Union Finance Minister Mrs. Nirmala Sitharaman in the Lok Sabha.
Mr. Ashish P. Dhakan , MD & CEO, Prama Hikvision India Pvt. Ltd.
A pro-growth budget with a vision for the new emerging India:
India’s progressive Union Budget seeks to complement macro-economic level growth with a focus on micro-economic level all inclusive welfare. It has a pro-technology focus with futuristic vision. A special thrust on promotion of Digital India and adoption of emerging technologies, including 5G, AI, ML and Drones. The key highlights of union budget underlines the economic growth estimated at 9.2% to be the highest among all large economies. It promises 60 lakh new jobs to be created under the productivity linked incentive scheme in 14 sectors. It also highlights the Production Linked Incentive (PLI) Schemes, which has the potential to create an additional production of Rs 30 lakh crore. This budget has a roadmap for achieving the objective of ‘Make-in-India’ and ‘Atmanirbhar Bharat’. The customs duty rationalisation to incentivise domestic manufacturing is a welcome step.
The budget has the PM Gatishakti Scheme with ambitious plans to transform the transportation sector. The seven engines that are going to drive PM GatiShakti are Roads, Railways, Airports, Ports, Mass Transport, Waterways and Logistics Infrastructure. The big boost to infrastructure will help the security industry growth in the long term.
There is a greater focus on MSME sector in the budget and as a key stakeholder of the MSME Ecosystem, we feel this a very positive step for the security industry. The government has announced that Udyam, e-shram, NCS and ASEEM portals will be interlinked. The help is provided to 130 lakh MSMEs as additional credit under Emergency Credit Linked Guarantee Scheme (ECLGS). The extension of this scheme till March 2023 is a thoughtful decision. The firm focus on Skill Development is another positive aspect of the union budget. Digital Ecosystem for Skilling and Livelihood (DESH-Stack e-portal) will be launched to empower citizens to skill, reskill or upskill through on-line training. Overall a pro-growth budget with a vision for the new emerging India on global front.
Mr. Alain SPOHR, Managing Director, Alstom India & South Asia:
“We welcome the progressive and growth-oriented Union Budget presented by the Finance Minister for 2022-23. India is poised to regain its title of the fastest-growing large economy with a 9.2% GDP growth estimated for the coming year. With an enhanced capital expenditure outlay of 35% as compared to last year, core infrastructure segments including Railways and Urban Transport stand to benefit and will have a huge multiplier effect on the economy.
Highlight of the budget was the announcement to introduce 400 new Vande Bharat trains over the next three years, introduction of the state-of-the-art KAVACH TCAS signalling systems over 2000 kms of railway network, larger investments to provide for sustainable and integrated urban transport systems. The total budget estimates of Rs 23,875 crore for MRTS & Metro Projects will incentivise faster implementation of projects and the standardisation of metro design systems will provide the much-needed stability for manufacturers.
The development of 100 Cargo terminals over the next 3 years will also improve India’s competitiveness in faster and cleaner logistics and freight movement by rail. The announcement of a new legislation regarding Special Economic Zones is a welcome step as it will help India enhance the competitiveness of its exports and integrate successfully with global supply chains.
From a policy standpoint, launch of the next phase of Ease of Doing Business (EoDB 2.0), is a step in the right direction. Modernized rules for evaluation of complex tenders especially transparent quality criteria and provisions for payment of 75% of running bills mandatorily within 10 days will encourage faster dispute resolution.
Introducing PLI scheme for railway manufacturers and exporters promoting Make-in-India would have been ideal for fast-tracking the implementation of projects and supporting the manufacturing ecosystem. We were anticipating FM’s announcement regarding plans for the private train operations; however, this budget provides the overall push towards economic growth and addresses the key priorities of the Government.”
Mr. Sunil Mathur, Managing Director and Chief Executive Officer, Siemens Limited
We welcome the growth-oriented budget with a focus on the four pillars – productivity, climate action, financing investments, and PM Gati Shakti plan. These are concrete steps in the right direction, and over time should positively impact the economy. The increased Capex outlay of Rs.7.50 lakh crore further demonstrates the intent of the government to create the necessary impetus for the economy. Stability in tax policy is also a welcome step.
Maccaferri – Vikramjiet Roy, Managing Director of Maccaferri Environmental Solutions Pvt. Ltd
‘This budget reflects the government’s push towards sustainable development. Encouraging safe and modern public transport, road connectivity and infrastructure facilities to remotest parts of the country especially in the North East with a focus on renewables showcases the government’s push on reducing the carbon footprint.
The policy push towards battery swapping will also significantly increase the rate towards EV adoption that will help towards India achieving its net zero commitment.’
Rajeev Singh Partner & Automotive Leader, Deloitte India
Massive focus this year on logistics infrastructure, additional multi-modal parks, cargo terminals, vande Bharat trains could help in reducing our logistics costs as well as overall inventory on wheels.
Ashish Gupta, Managing Director, Texmaco Rail & Engineering Ltd:
We welcome FM’s announcement of development of railway infrastructure in the budget. This will result in increase of railways share in overall freight and will have a cascading impact on the industries associated with railways. Overall a very positive budget for all the segments of railways like wagon manufacturing, EPC business etc.
