Expect a skillful balancing act from FM in upcoming Budget: L&T

作者:Laura 時間:2018-01-04 20:14:11 標籤: 分類:

All eyes now on the national capital as countdown to the 2018 Union Budget starts. In exactly 28 days from now, Finance Minister (FM) will present the Budget in the parliament.

A skillful balancing act is expected out of the FM, it is not going to be easy but I would expect voicing India Inc’s views that the expectation that will be upper most in all our minds is how investments are going to be enabled, R Shankar Raman, Group CFO, Larsen & Toubro told CNBC-TV18.

According to him, calendar year 2018 will be a critical year for the industry and the government ahead of 2018 elections.

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He sees a sense of urgency with respect to opening tenders submitted in the last few months.

R Shankar Raman
R Shankar Raman

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I don』t see a great rush of bids that are coming out but the bids that have been in the works for a while are now beginning to move towards their consummation point. From that perspective the lead up to the calendar 2018 has been better than what it was same time in the previous year, he added.

There is usually a delay of 25 percent over government timeline estimate for infrastructure execution. The most important task between the government and the bureaucracy would be to see how to crash this timeline, said Raman.

On government capex for infrastructure sector, he said that the government resources are stretched because of so many diversions but the fact is that if they are able to meet their commitment of Rs 1 lakh crore, we would take a big step forward.

He expects actual government infrastructure spend of around Rs 75,000 crore versus the estimated Rs 97,000 crore.

Ease of business has to become the top priority and we have a long way to go in improving ease of doing business in infrastructure sector, he further mentioned.

Speaking about Q4FY18 numbers, he said he expects this quarter to be productive because historically it has been the most productive quarter for us in terms of order inflow.

I wish FM walks the talk on reducing corporate tax to 25 percent and would expect the government to look at reduction of minimum alternative tax (MAT) rate, Raman said.

For full interview, watch accompanying video...


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