According to Mr. D. P. Agarwal, Vice Chairman & Managing Director, Group TCI, “The Union Budget 2010-11 has given major thrusts to the infrastructure sector. “Allocation of Rs.1,73,552 crore for upgrading infrastructure in both urban and rural area will provide an impetus to the logistics sector. The Finance Minister has placed emphasis on the need for accelerated development of high quality physical infrastructure such as roads, ports, airports and railways, which are essential to sustaining economic growth and Rs. 19,894 crore has been allotted for road transportation. Decision to build 20 km of road everyday is very positive and if implemented, it will help in smooth functioning of the logistics sector.”
“However increase in fuel prices will have a direct and negative impact on the logistics sector as fuel constitutes around 50%-60% of the total cost. It will be difficult for the logistics companies to absorb the hike and therefore truck rentals and freight rate will increase to some extent.”
“We are also hoping for timely and flawless implementation of Goods and Services Tax (GST) by April 2011, which will replace the cascading effect [tax on tax] created by existing indirect taxes.”
“Benefit given to the refrigerated and cold storage segment is a welcome move as it will help improve and add infrastructure in this area.”
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