New Delhi, Feb 3 (IANS) Infrastructure development plans are likely to stimulate further investments from the private sector to boost the transport and logistics sector, a report showed on Monday.

The Union Budget provides specific focus on the shipping industry and attracting investments in India by providing exemptions and relaxations to non-residents and IFSC units on certain income, said KPMG in India in its report.

The plans include an outlay of Rs 10,000 crore to fund infrastructure development through the public-private partnership (PPP) route.

Rs 1.5 lakh crore interest-free loan will be provided to states for meeting state-level infrastructure capital outlay, according to the Budget.

A second Asset monetisation plan has been announced to raise Rs 10 lakh crore with an aim to bring in greater participation from the private sector corporates and investor community

Maritime Development Fund will be set up to provide funding up to 49 per cent of the cost with the balance to be contributed by private sector or port trusts

Modified ‘Ude Desh ka Aam Nagrik’ (UDAN) scheme has been announced to enhance the connectivity outreach programme.

“Greenfield airport development in Bihar will likely enhance the connectivity of the state to the rest of the country and create employment opportunities, said the report.

The Budget has proposed setting up a Maritime Development Fund with a corpus of Rs 25,000 crore for the long-term financing of the maritime industry. This corpus will be for support and promoting competition in the maritime industry. The fund will have up to 49 per cent contribution by the government, and the balance will be mobilised from ports and the private sector.

The shipbuilding Financial Assistance Policy will also be revamped to address cost disadvantages, which will also include Credit Notes for shipbreaking in Indian yards to promote the circular economy. The government sees tremendous demand stemming from the needs of the Indian shipping market which should be adequately targeted by Indian shipyards.