In the third installment of our special budget series, we look at the three crucial sectors that can power the economy. The power sector, intrinsically linked to the infrastructure sector needs some major incentives to show the kind of results that can propel India to double-digit growth. Experts feel that power and infrastructure sectors haven’t really seen growth in the last decade or so.
As far as providing low cost power to consumers is concerned the panel also feels this could be a problem for the sector as the race for providing low cost power affects the sector in a negative manner. The fact that power is a state subject has prompted many to say that the leadership shown by the central government is welcome even though in the end it has to fall to the state governments to implement any reforms.
As far as the realty sector is concerned the possibility of a regulator has excited the stakeholders. For the longest time the main grouse of real estate players was lack of clarity as far as policy and regulation was concerned. Disputes and litigation also have been the bane for the sector. Experts have demanded flexibility in awarding infrastructure contracts. Tax relief for real estate buyers is also one of the main demands of analysts. This episode also deals with the issue of stressed assets, something, that is one of the main causes of the real estate market becoming stagnant.