Trans­port in­dus­try wait­ing for a boost

The grow­ing trans­porta­tion in­dus­try needs at­ten­tion from the gov­ern­ment with re­gards to long term plan­ning and fi­nanc­ing, feels Vi­neet Agar­wal, Man­ag­ing Di­rec­tor, Trans­port Cor­po­ra­tion of In­dia (TCI). He dis­cusses the fu­ture of the trans­port in­dus­try.

Cargo Talk - - Lsp Talk - Vi­neet Agar­wal Man­ag­ing Di­rec­tor Trans­port Cor­po­ra­tion of In­dia (TCI)

The lo­gis­tics sec­tor is yet to be ac­corded an in­dus­try sta­tus that will fa­cil­i­tate eas­ier ac­cess to fi­nance and ro­bust reg­u­la­tory mech­a­nisms. The fu­ture growth prospects of the In­dian econ­omy de­pend on in­fra­struc­ture in­vest­ment and the timely ex­e­cu­tion of large projects. The gov­ern­ment should en­sure im­ple­men­ta­tion of large projects un­der the PPP for­mat aside from al­lo­cat­ing long-term funds to­wards in­fra­struc­ture de­vel­op­ment.

The reg­u­la­tory frame­work should be stream­lined. For ex­am­ple, there should be tax ben­e­fits for ex­pen­di­ture on skill de­vel­op­ment. The treat­ment of ware­hous­ing for nona­gri­cul­tural com­modi­ties should be at par with in­fra­struc­ture projects. Ser­vice tax - Re­verse Charge Mech­a­nism should be ap­pli­ca­ble only in the case of im­port of ser­vices from ment of ac­cess-con­trolled ex­press­ways and im­ple­men­ta­tion of a cen­tralised toll mech­a­nism. The move will fa­cil­i­tate faster move­ment of goods by bring­ing uni­for­mity in toll charges, re­duc­ing doc­u­men­ta­tion and unau­tho­rised pay­ments through agents. The de­ci­sion to im­ple­ment Elec­tronic Toll Col­lec­tion (ETC) this year is a step in the right di­rec­tion, and can save the coun­try 86,000 crore an­nu­ally.

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