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Transport Ministry of India initiative for Eco-Friendly transportation in the country likely to save Rs 60,000 cr. of fuel

BK Modi, an Indian-born but Singapore-based entrepreneur has offered two electrical buses to the government of India to initiate the implementation of eco-friendly transportation in the country

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Eco-friendly transportation. Image source: Pixabay
  • The government to analyse various measures for the implementation of FAME
  • BK Modi has offered two electrical buses to the government for the same
  • This initiative will lead to the saving of 60,000 crores of fuel that will benefit transport industry 

Sept 10, 2016: The Transport Ministry of India is undergoing a rigorous exercise of analysis to find the most appropriate ways for the implementation of a policy called FAME (Faster Adoption and Manufacturing of Hybrid and Electrical Vehicles).

The introduction of electrical and hybrid vehicles in India will bring about various changes in the economy as well as in the environment. According to Anant Geete, the Heavy Industry Minister, the functioning of electrical vehicles will save an amount of 60,000 crores in the fuel and also in the vehicle industry, reported The Hindu.

To make sure that the government reaches a point where it gets ready for a practical implementation of this policy, an amount of 14,000 crores is being allocated for this project. The implementation of this initiative will also lead to a tremendous amount of reduction in the pollution caused by the running of petroleum or diesel vehicles.

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B K Modi, the chairman of Smart Group is an India-born but Singapore-based entrepreneur. His company deals in areas of health, finance, and mobility. In a recent interview, he mentioned about his various tie-ups and plans regarding the introduction of eco-friendly vehicles in India. He said, that he has signed an agreement with the BY Danto industry based in South California for the same, quoted businessworld.in.

His company is focusing on the public vehicles initially as this will lead to the testing of this policy in an effective manner. For this, he has also offered two electrical buses to the government for the purpose of having a round of trial but is yet to get a solid reply from the government of India, reported The Hindu.images Nitin Gadkari, the Minister of Transportation, in an event, when questioned about this policy, gave a critical reply.

He said that for the implementation of this policy the government will have to look into various sectors like the roads, public and private vehicle mobility, road map safety, etc.“We are seriously studying the implementation of this policy and will soon approach the cabinet for this” the Minister said.

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Agreeably, the introduction of eco-friendly vehicles in India will lead to a chain of benefits in the economy as well as the environment but also lies with it the greatest matter of concern that is the question of whether our country and our government is actually ready for the successful implementation of it, mentioned The Hindu.

The Nitin Gadkari-led ministry soon needs to find out methods for the implementation of the initiative and let the entire nation drive in a state of developed eco- friendly transportation system. A solid transport budget with the specific amount of money allocation, along with the measurements regarding the various facilities required for the functioning of electrical buses will work well in a country when it is likely to benefit all.

– prepared by Ayushi Gaur of Newsgram

Next Story

Will The Budget Provide a Lifeline to Realty?

There is likelihood of bringing down the GST on construction material like cement to boost home affordability, paving the way for speedy revival of housing.

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Modi, India, Farmers
Indian Prime Minister Narendra Modi, center, is garlanded by BJP leaders on the first day of the two-day Bharatiya Janata Party national convention in New Delhi, Jan. 11, 2019. VOA

By Vinod Behl

In a way, this year’s interim budget, the last from the present NDA government before the Lok Sabha elections, is set against a similar backdrop as its first (albeit not full) budget of 2014-15 when the real estate sector was reeling under a major financial crisis. As such, it is expected of the February 1 budget to provide a liquidity lifeline to revive the realty sector, recently hit by the crisis in the NBFCs that have been a major source of its funding.

The Modi government’s first budget had contributed to considerably improving the investment climate by liberalising the FDI norms in the construction sector, besides injecting Rs 4,000 crore to the National Housing Bank (NHB) to promote affordable housing and introducing REITs (Real Estate Investment Trusts) with tax incentives to unlock a new source of financing for cash-strapped developers.

So, on the one hand, while that budget focused on boosting supply through increased investment, on the other hand, it provided a recipe to boost demand by increasing the home loan interest exemption limit by Rs 50,000 and raising the income tax limit by Rs 50,000. And now, five years later, in the wake of the real estate sector facing the initial disruptive impact of progressive reforms like RERA and GST, the sector is looking up to the government to provide it a similar budgetary booster dose, both on the supply and demand side.

India, Farmers
Interim Finance Minister Piyush Goyal, center, holds a briefcase containing federal budget documents with Junior Finance ministers Shiv Pratap Shukla, center right, and Pon Radhakrishnan, left, upon their arrival at the parliament house in New Delhi, India, Feb. 1, 2019. VOA

Though the key reforms undertaken by the NDA government have brought in the much needed transparency and fair play in realty transactions, yet the restrictive provision of maintaining escrow accounts under RERA to check misuse of customer funds has resulted in liquidity constraints for the developers, made worse by the crisis in the NBFCs.

Hundreds of housing projects across India are today stalled for want of funds, in turn driving down the real estate sentiment. It is in this backdrop that the sector is looking up to the new budget as a saviour to provide some kind of lifeline to the stalled projects. It is expected of the budget to create a stressed asset fund to take up incomplete projects.

The industry captains are also hoping that the budget may provide some incentives to stressed asset companies to encourage them to undertake stalled projects. And to further boost supply, the industry has on its budget wishlist a long-pending demand of introducing a structured single window clearance system.

The supply constraint can be considerably tackled by boosting flows from banks to the sector. This can be achieved through a policy initiative to grant industry status to real estate, though in the backdrop of NPA-struck banking, this looks unlikely, especially as the infrastructure status earlier granted to affordable housing has not brought in the desired results in terms of cheaper bank funding.

 

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Himachal Pradesh Governor Acharya Devvrat being welcomed by CM Virbhadra Singh and Speaker BBL Butail on his arrival on the first day of Budget Session of the State assembly, Flickr

Incentivised policies to promote rental housing and boost construction skills and technology are also required which may ultimately improve home affordability.

While the liquidity crunch has been adding to the supply side problems, the current crisis in the real estate sector has a lot to do with home affordability. As such, it is expected of this budget to follow the first budget of the NDA government in enhancing the income tax limit as well as increasing the home loan interest deduction limit.

And as inflation has shown signs of relaxation, going forward, the reduction in interest rates, especially subsidised interest rates for affordable housing, along with tax benefits in home insurance, may well bring home ownership within comparatively affordable limits.

Besides unaffordable home prices, the high transaction cost (12 per cent GST for standard housing and 8 per cent for affordable housing), in addition to 6-7 per cent stamp duty, has been playing spoilsport in reviving housing. The government may well bring down the GST to 8 per cent and 5 per cent, with input tax credit, to make it more or less tax neutral.

 

Also Read: With The Elections Coming Up, Indian Government Promises Farmers Their Income Support

Further, there is likelihood of bringing down the GST on construction material like cement to boost home affordability, paving the way for speedy revival of housing.

But the big question is: Will these high hopes from the interim budget materialise for the real estate sector, especially as due to poll compulsions, the government has a higher priority of addressing the rural and farm distress? (IANS)

(Vinod Behl is Founder & Editor, Ground Real(i)ty Media)