Tata Steel CEO hails Budget as progressive and growth-oriented

TV Narendran, CEO & MD, TataSteel, on Monday described the Union budget 2021-22 as ''veryprogressive and growth-oriented'', while maintaining thatproper implementation of the reforms was critical for thebenefits to reach all sectors.

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

''We welcome the proposed reforms. However, theimplementation of these reforms will be critical for thebenefits to percolate across the economy,'' he said in astatement.

Heaping praise on the central government for theannouncements made with respect to the national rail plan, JalJeevan Mission, and City Gas Distribution Network, Narendransaid the decisions taken will generate new employmentopportunities and spur demand in multiple sectors.

The Budget has also tried to address myriad concernsof 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 ofcustoms duty on steel products would benefit the MSME sector,the Tata Steel CEO stated.

''The reduction in customs duty will have nosignificant impact on the steel industry as the alloy ismostly imported from countries, with which we have an FTA(Free Trade Agreement),'' the statement said.

Narendran also pointed out that the Budget has furtherwidened the scope of faceless taxation that will eventuallyreduce litigation.

Reforms and measures such as Production LinkedIncentive scheme, setting up of Development FinanceInstitution, 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 itrecognises and emphasises the participation of private playersin all key areas, including the financial sector,'' he added.

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