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.
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.