Tata Steel CEO hails Budget as progressive and growth-oriented

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Jamshedpur, Feb 1 (PTI) TV Narendran, CEO & MD, Tata Steel, on Monday described the Union budget 2021-22 as 'very progressive and growth-oriented', while maintaining that proper implementation of the reforms was critical for the benefits to reach all sectors.

The increased capex in the infrastructure sector will have a 'multiplier effect' as it will create demand across product categories, including steel, he said.

'We welcome the proposed reforms. However, the implementation of these reforms will be critical for the benefits to percolate across the economy,' he said in a statement.

Heaping praise on the central government for the announcements made with respect to the national rail plan, Jal Jeevan Mission, and City Gas Distribution Network, Narendran said the decisions taken will generate new employment opportunities and spur demand in multiple sectors.

The Budget has also tried to address myriad concerns of the informal sector, of which migrant workers are a part, by announcing a social security scheme, he said.

Exemption of duty on steel scrap and reduction of customs duty on steel products would benefit the MSME sector, the Tata Steel CEO stated.

'The reduction in customs duty will have no significant impact on the steel industry as the alloy is mostly imported from countries, with which we have an FTA (Free Trade Agreement),' the statement said.

Narendran also pointed out that the Budget has further widened the scope of faceless taxation that will eventually reduce litigation.

Reforms and measures such as Production Linked Incentive scheme, setting up of Development Finance Institution, simplification of regulatory complexities, extension of tax holiday for start-ups will provide the much- needed fillip to the economy and enable growth, he noted.

'Overall, we can call it a reformist Budget as it recognises and emphasises the participation of private players in all key areas, including the financial sector,' he added.