Budget 2013: Government impetus needed to revive infrastructure and power sectors

For local engineering and capital good firms, the Union Budget 2013 will be critical as the industry is eagerly waiting to see if the government provides an impetus to the infrastructure and power sectors.

Engineering and capital goods companies have been been badly hurt in the last couple of years with a policy paralysis and projects haven't taken off on the ground. Indeed, it has been one of the worst years for companies in these sectors.

The industry is also pitching for easier access to financing of infrastructure projects and measures to boost the private sector to participate and invest projects considering the limitations of the state to invest money to build roads, ports and airports given the fiscal mess.

Availability of coal, which has become a major issue for the sector, also needs to be addressed in this Budget.

The industry also expects the Finance minister to provide greater clarity on the working of the Cabinet committee on Investment and is also pitching for tax holidays or other fiscal incentives for large ticket infrastructure investments.