Mr Vinay Kshirsagar, Chief Financial Officer (CFO) of Shreyas Shipping and Logistics Ltd, has welcomed the Budget 2011-12 proposal allowing shipowners to import spareparts duty free, according to Exim News Service.

However, as regards direct tax, he opined that the increase in minimum alternate tax (MAT) would have a negative impact. Mr Kshirsagar, though, viewed the reduction in corporate surcharge as a positive development.

He was appreciative of the indirect benefits given to the logistics sector, among them being tax-free bonds of Rs 30,000 crore to boost infrastructure, which, he stressed, would go a long way in augmenting road and rail infrastructure.

Investments in warehousing of up to Rs 2,000 crore will help the company expand its activities in the sector, he pointed out, and welcomed cold storage projects being classified as infrastructure.

He expressed happiness that the bottlenecks in the transportation of food, etc. had been identified and measures proposed to curb them. He also welcomed the proposal to establish 15 mega food parks.

"All this goes to prove that the Indian economy is realising the huge expenditure on logistics cost... and taking active steps to get the same under control," he underscored.