With infrastructure bottlenecks plaguing the economy, financial services provider Goldman Sachs expects the upcoming Budget to provide a big stimulus to this core sector, particularly roads and ports.
"We expect a big boost in infrastructure spending in the upcoming Budget...We expect a big stimulus to be provided to roads and ports in particular," Goldman Sachs said in a report.
Goldman Sachs expects speedy regulatory approvals, more budgetary allocation, and the setting up of a "Roads Finance Corporation" to fund road projects, which would
securitize its income and list on the stock exchange, among others.
Liberalising investment guidelines for insurance and pension funds in related sectors, increasing the exposure limits of banks for specific sectors; and giving a big push to Public Private Partnership (PPP) projects in infrastructure are on the cards, Goldman Sachs said.
For the power sector, the financial services firm expects the Budget to contain significant increases in spending, including for generation, rural electrification, and for minimising transmission and distribution losses.
Other measures, which the Budget may announce on infrastructure, would be to give greater flexibility to the Infrastructure Investment and Financing Company Ltd (IIFCL), which has been set up as a refinancing facility for infrastructure projects, to deploy funds.