FOCUS ON THREE-WHEELERS
While bringing government’s focus toward three-wheelers, Vijay Kedia, Director at Atul Auto said: “Although the expectations list is long, but in short we expect that two percent excise duty should not be raised especially in three-wheelers as they are the cheapest and safest mode of transportation in the world. Any hike in excise will be passed on as we are already reeling under cost pressure. It will result into higher inflation. We advocate not raising Tax on Diesel Vehicle as it is a pure fuel and Government is spending huge sums in bringing awareness for Green Energy. As it stays, raising taxes on diesel will not bring any substantial revenue to the government.
“We expect that three-wheelers (Passenger and commercial) purchased on loan should be given benefits on the interest they bear. And to save on rising petroleum cost four-wheel transportation should be banned in small cities and towns. A three-wheeler gives a fuel average of 35km per liter against an average of 15km to 20km per liter by four-wheeler used for the same purpose.”
RELIEF ON INPUT COSTS
With an optimistic overview, AM Muralidharan, Managing Director of Volvo India, expressed his expectations from the Union Budget by adding: “I am optimistic that with more investment planned by the government in infrastructure the funding of projects will not be a problem. In the current economic scenario the input costs for infrastructure projects (like steel, cement) are pretty high.
“I am hoping there is a reduction in these input costs from the upcoming budget .This in turn can prove to be a positive move for construction equipment companies as infrastructure companies will look towards us for providing equipment.”
“While the infrastructure segment is critical for construction equipment manufacturers there is strong potential for us in the mining sector as well which contributes to almost 2.9 percent of India’s GDP. However in the last one year the mining market has been pretty flat. As the Indian mining industry grows further we see both new and the existing mining players offering significant wealth creation opportunities to investors and also construction equipment manufacturers,” Muralidharan added.