Even though the Union Budget 2012-13 has come in for a lot of flak from various quarters mainly on account of it being bereft of any path-breaking aggressive measures on the Reforms side or even on the Fiscal consolidation front but it is not ENTIRELY devoid of proposals that could be positive for the Infra/Power space. For the benefit of my Readers, I have hereunder attempted to enlist some of these sops. Hope you guys find it useful.
- Allowing select Financial Institutions to raise Rs 60000 crores in tax free Bonds for financing infra projects. This limit was at Rs 30000 crores in current fiscal.
- Allowing External Commercial Borrowings (ECBs) for capital expenditure on the maintenance and operations of Toll systems for highways.
- Allocation to the Highways Sector increased by 14% to Rs 253360 cr for fisc 2012-13.
- Set out a enhanced target of covering a length of 8800 kms of roads under the flagship National Highways Development Programme.
- Proposal to increase allocations substantially on Rural Roads and other Rural Infrastructure.
- Allowing the POWER sector to raise ECBs to part re-finance the rupee debt on Power Plants.
- Allowing the Power Utilities to issue tax-free Bonds upto Rs 10000 cr.
- Reduced the witholding tax on ECBs from 20% to 5% till 2015.
- Elimination of the Dividend Distribution Tax particular focus on SPVs.
- Extending the tenure of relevant Clauses of the IT Act to enable Power Utilities set up on or before fisc 2013 end to claim 100 % deduction of Profits for tax purposes for 10 years and claim depreciation of 20% to new assets acquired by Power Companies.
- Proposal to grant full exemption on Customs Duty for import of Coal and regas-LNG.
- Full exemption from Basic Customs Duty for inputs imported for Coal Mining Projects..
PROBLEM IN INFRA/POWER IS NOT FOR FUND BUT OTHERS LIKE LAND, ENV. CLEARANCE, ETC. UNTIL THAT ADDRESS NOTHUNG WILL HAPPEN
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