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Budget 2010-11 News

Highlights : Union Budget 2010 | Railway Budget 2010

Budget boosts infra sector
NEW DELHI, Feb 26: The Budget 2010-11 has addressed the Infrastructure issue with a number of allocations towards the various aspects of the sector. Finance Minister, Pranab Minister, announced a Rs. 10,000 crores allocation towards Indira Awaas Yojna and Rs. 48000 crores towards Bharat Nirman. 25% of the planned allocation is towards rural infrastructure.

An interest subvention for housing loans up to Rs. 1 lac has also been announced.

The allocation towards NREGA scheme has been enhanced to Rs. 41000 crores. A fund of Rs. 5130 crores has been set aside for the power sector.

IT slabs broadened in Union Budget
NEW DELHI, Feb 26: The finance ministry today while presenting Union Budget 2010-11, announced an enhancement in IT exemption limit and the withdrawal of surcharge. Budget 2010-11 broadened the IT slabs.

The IT department now has to notify Saral 2 form for indivisual tax payers. The Minimum Alternate Tax has been hiked to 18 %.

The IT slabs has been revived as 10% tax on income between Rs1.6 lacs to 5 lacs, 20% tax on income between Rs5 lacs to 8 lacs and 30% tax on income above Rs 8 lac.

MSMEs alloted Rs. 2400 cr : Budget 2010-11
NEW DELHI, Feb 26: The Micro Small and Medium Enterprises (MSMEs) of India were paid special attention in the Union Budget 2010-11 today, with the Union Finance Minister, Pranab Mukherjee, announcing a fund of Rs. 2400 crore for MSMEs.

The allocation of fund is made with the sole view of boosting the MSME sector.

Govt. targets Rs. 25000 Cr through disinvestment
NEW DELHI, Feb 26: Union Finance Minister, Pranab Mukherjee's Budget 2010-11 targets a disinvestment of Rs. 25,0000 crores.

Today, while presenting the Union Finance Budget 2010-11 at Parliament, Pranab said that the government has planned to disinvest in the market with an overall expectation of Rs. 25,000 crore.

Finance Minister also supported the calibrated exit strategy for fiscal stimulus.

Fertiliser subsidy reduced: Budget 2010-11
NEW DELHI, Feb 26: The Finance Ministry has announced a reduction in fertiliser subsidy in Budget 2010-11, presented today in Parliament.

The nation was already expecting a Stimulus rollback, and hence, the reduction in Fertiliser subsidy didn't come as a surprise. On the other hand, in order to strike a balance, Finance Minister, Pranab Mukherjee's budget offered a fresh subsidy of 2% on loans to farmers.

Besides, farm loan payments are to be extended for six months. After the revival of subsidies and taxes for the agricultural sector, the farm credits are targeted to be increased to Rs 3.75 lakh Crs.

Pranab presents Budget 2010-11, expects 10% GDP growth
NEW DELHI, Feb 26: Union Finance minister, Pranab Mukherjee, presents the Union Budget 2010-11 in Parliament on friday.

Pranab said that the Indian Economy is in a much better position than the previous year. Further, he said that economy can achieve GDP growth rate of 10% in the coming financial year also, he takled about the facing the challenge of reverting to double digit growth.

Significant private investment inflow is also expected to boost GDP growth rate.

FM to present Budget amidst stimulus rollback speculations
New Delhi, Feb 26: Union Finance Minister, Pranab Mukherjee will present the Finance Budget 2010-11 around 11 am on Friday.

Partial rollback of stimulus packages is the most speculated issue in this budget season and thus, all eyes would be on Pranab Mukherjee as he would table the Budget 2010-11 in Parliament.

The Economic Survey released on Thursday, suggested an increase in taxes and duties as a part of partial withdrawal of stimulus packages, offered to cope up with the global economic meltdown.

"The broad-based nature of the recovery creates scope for a gradual rollback, in due course, of some of the measures undertaken over the last 15 to 18 months," said the Survey.

Economic survey suggests more stimulus for export sector
New Delhi, Feb 25: The pre-budget Economic Survey on Thursday supported the extension of stimulus for export sector as the recovery prospects of the sector in international market are still dicey.

"The downside risks for world and the Indian trade lie in the fact that though the fall has been arrested, both output and trade recoveries are still fragile given the fact that the recovery has been pumped up by the stimulus given by different countries, including India," the survey said.

The Economic Survey not only suggested the continuation of stimulus for the export sector, but also suggested a further reduction in the excise duty for related industries.

Corporate India unhappy over stimulus rollback proposed in economic survey

New Delhi, Feb 25: The presentation of Economic Survey in Parliament today, left India Inc visibly upset. The Corporate India was unanimously counting on Finance Minister, Pranab Mukherjee, for the continuation of stimulus packages, but the pre-budget Economic Survey crashed all its hope with the suggestion of gradual rollback of stimulus.

"For a higher growth, the government will have to adopt a calibrated approach and continue with stimulus package for at least another fiscal," Assocham president Swati Piramal said.

Confederation of Indian Industries (CII) also condemned the withdrawal of stimulus incentives.

Economy to grow at 9%: Economic Survey 2009-10

New Delhi, Feb 25: The pre-budget Economic Survey (2009-10), presented by Finance Minister Pranab Mukherjee in Parliament on Thursday predicted that India would bounce back to a high nine per cent growth in 2011-12 and possibly will become world's fastest growing economy in just four years.

The survey warned that high food prices would rise further over next few months and it has held the food management policies responsible for the high prices of items like sugar. Food inflation is at present hovering close to 18 per cent. The Economic Survey 2009-10 recommended a "gradual rollback" of stimulus measures after carefully assessing its impact on each sector.

Economic Survey 2009-10 to be tabled on Thursday

New Delhi, Feb 24: Union Finance Minister, Pranab Mukherjee will be presenting the Economic Survey of India 2009-2010 on February 25, 2010 in Lok Sabha, wherein, the finance ministry would review the annual economic development of the country during the last fiscal year. The Survey would focus on various micro and macro economic parameters with complete statistical data and analysis. Every year Economic Survey is conducted to calculate the economic status or actual position of the country.

According to Finance Minister Pranab Mukherjee, economy is to grow over 7.5% this fiscal and 8% next fiscal.

Mamata announced 16 'Bharat Tirth' tourist trains

New Delhi, Feb 24: In order to promote tourism, Union Railway Minister, Mamata Banerjee announced 16 special “Bharat Tirth” trains in the Rail Budget to connect various tourist areas and pilgrimage sites of the country.

The name “Bharat Tirth” has been christened after Rabindranath Tagore's famous poem.

"The running of Bharat Tirth is to emphasise our unity in diversity and bring to reality Kabiguru's (Rabindranath Tagore) words in our national anthem Punjab Sindhu Gujarat Maratha, Dravida Utkala Banga, Vindhya Himachal Yamuna Ganga," said Mamata.

Following are the proposed routes for “Bharat Tirth” trains-

Howrah-Gaya-Agra-Mathura-Vrindavan-New Delhi-Haridwar-Varanasi-Howrah
Howrah-Chennai-Puducherry-Madurai-Rameswaram- Kanyakumari-Bangalore-Mysore-Chennai-Howrah
Howrah-Vizag-Hyderabad-Araku-Howrah
Howrah-Varanasi-Jammu Tawi-Amritsar-Haridwar- Mathura-Vrindavan-Allahabad-Howrah
Howrah-Ajmer-Udaipur-Jodhpur-Bikaner-Jaipur-Howrah
Mumbai-Pune-Tirupati-Kancheepuram-Rameswaram-Madurai-Kanyakumari-Pune-Mumbai
Pune-Jaipur-Nathdwara-Ranakpur-Jaipur-Mathura-Agra-Haridwar-Amritsar-Jammu Tawi-Pune
Pune-Ratnagiri-Goa-Bangalore-Mysore-Tirupati-Pune
Ahmedabad-Puri-Kolkata-Gangasagar-Varanasi-Allahabad-Indore-Omkareshwar-Ujjain-Ahmedabad
Bhopal-Dwaraka-Somnath-Udaipur-Ajmer-Jodhpur-Jaipur-Mathura-Vrindavan-Amritsar-Jammu Tawi-Bhopal
Bhopal-Tirupati-Kancheepuram-Rameswaram-Madurai-Kanyakumari-Thiruvananthapuram-Kochi-Bhopal
Madurai-Chennai-Kopargaon-Mantrayalam-Chennai-Madurai
Madurai-Erode-Pune-Ujjain-Veraval-Nashik-Hyderabad-Chennai-Madurai
Madurai-Chennai-Jaipur-Delhi-Mathura-Vrindavan-Allahabad-Varanasi-Gaya-Chennai-Madurai
Madurai-Varanasi-Gaya-Patna Sahib-Allahabad-Haridwar-Chandigarh-Kurukshtra-Amritsar-Delhi-Madurai
Madurai-Mysore-Goa-Mumbai-Aurangabad-Hyderabad-Madurai

A slew of concessions in Rail Budget

New Delhi, Feb 24: While presenting Railway Budget 2010-11, Union Railway Minister Mamata Banerjee announced a reduction of Rs. 100 per wagon for the transportation of foodgrains, kerosene and fertilisers. There has not been any change in the passenger fares, as expected.

Banerjee also proposed a reduction in the maximum limit of service charge of e-ticketing system. The maximum charge will be revised to Rs. 10 for sleeper class and Rs. 20 for AC class, which currently stands at Rs.15 and Rs. 40 respectively.

The Rail Budget this time brought along a string of concessions for the passengers as free travel for cancer patients traveling for treatment in three-tier AC or sleeper class and the continuation of concessions for Madrassa students and journalists. Concessions to the Film industry people and technicians are also offered. Apart from this, from now onwards, the press concessions will also be extended to family and dependents up to 20 years.

Highlights of Rail Budget 2010-11

New Delhi, Feb 24: Here are the main highlights of Rail Budget 2010 presented by union railway minister Mamata Banerjee in parliament today:

Railways profit at Rs 1328 cr.
1,000 km of new rail lines
Rs 4,411 cr allocated for new rail lines
Rail link to Bangladesh proposed
E-ticket mobile vans to be introduced
117 new trains to be flagged out by March 31
Rs 1300Crs for passenger amenities
381 diagonistic centres throughout India to be set up alongside hospitals
Housing for all raiway employees in next 10 years
101 new suburban trains for Mumbai
Private operators can run special freight trains
10 more Duronto trains to be introduced
FY11 Gross traffic receipts Rs 94,800 Crs
Funding for Metro Rail projects increased by 55%
RFID technology to be used for freight transport
Railways will partner with CWG 2010
Railway exams can be taken in regional languages
To come out with 10 year plan called 'Vision 2020': Mamata
Premium Tatkal service for parcel, freight movements
5 wagon factories planned

India Inc. bullish about Rail Budget 2010

New Delhi, Feb 24: India Inc. has welcomed the announcement of another 1,000 km of new rail lines and PPP (Private-Public Partnership) offer by union Railway Minister Mamata Banerjee in parliament today.

In her budget speech, Mamata promised to provide all necessary clearance to new private investment in 100 days. She also announced a few dedicated freight corridors. Many sectors including steel have expressed satisfaction and termed this year's Railway Budget as visionary and positive.

Rail Budget 2010: Mamata seeks help from India Inc.

New Delhi, Feb 24: Railway Minister Mamata Banerjee said that it is time for private partnership in Indian Railways, but ruled out any possibility to privatise Indian Railways. In her budget speech, Mamata said that clearance to private investment will be provided in 100 days to speed up projects. She appealed to business houses to join hands for building partnership with Railways.

While presenting the Railway Budget today, she said a special task force will be set up for early clearance of projects. She proposed 17 new trains will be flagged off within 7 months. She also announced some sops for women and minority communities. Mamta proposed 1,000 km of new rail lines.

Indian Railways Vision 2020 to be put on fast track: Mamata

New Delhi, Feb 24: Mamata Banerjee pledge today in parliament to put Railways Vision 2020 on fast track. Presenting the Rail Budget for the year 2010-11, she said that Vision 2020 will address four strategic national goals: - Inclusive development (geographically and socially), Strengthening national integration;, Large-scale generation of productive employment, Environmental sustainability.

According to experts, Vision 2020 addresses one of the biggest development challenges of contemporary India, namely, Growth with Jobs and not Jobless Growth. By pursuing bold and unprecedented, ambitious targets in the much-needed expansion and modernization of the railway network in India, Vision 2020 aims at considerably enhancing the Indian Railways' contribution to the national goal of achieving double-digit GDP growth rate on a sustainable basis.

It will accelerate economic growth, open up new avenues for employment in the primary, secondary and tertiary sectors and also promote geographically and socially balanced growth.

Indian Railway not to be privatised: Mamata

New Delhi, Feb 24: Presenting the Union Rail Budget 2010, Mamata Manerjee said that there is no plan to privatise Indian Railway, while stressing on private-public partnership.

“Social responsibility is our main consideration and we want to help everybody within the limited infrastructure”, said Mamata.

She said that the Indian Railways is also exploring new business model and partnership option for inclusive growth.

“Pro-people” Rail Budget: Mamata

New Delhi, Feb 24: Railway Minister Mamata Banerjee has said that the Railway budget would be dedicated to the common man of India. Speaking to reporters on Tuesday, Feb 23, she said, "It is dedicated to janata as common man is our asset and strength."

She also announced that a new express train called "Peace Express" between Kashmir and Kanyakumari would be dedicated to the common man.

Besides the Peace Express, a "Culture Express" will also be announced as railways' tourism package to cover India's important heritage sites, she said.

Rail Budget to kick off Mamata's West Bengal poll campaign

New Delhi, Feb 24: Expectations of people are high from Mamata, but experts believe that Didi's Rail will depart from West Bengal. Mamata Banerjee will once again try to woo the people of West Bengal through a populist Rail Budget. Mamata is expected to present West Bengal-oriented Rail Budget to targeting West Bengal assembly poll.

West Bengal will go into the assembly polls within a year and Mamata will announce various new trains and new projects for the state.

According to sources, 12 new Duranto Express trains are likely to be announced, in which five trains will leave from Kolkata. Top railway officials confirm that the needs of common man has been given priority. The minister also said that the Railway Budget has been dedicated to common man. This year's Rail Budget will also display Mamata's vision 2020.

Rail Budget: “Pro People” or “Pro-Bengal”
New Delhi, Feb 24: People of West Bengal can expect a lot of sops in Mamata Banerjee's railway budget today, as the 2011 Assembly elections in the state are not too far away. Lavishing gifts on her home state, Didi would look to make her way to the Writers' Buildings in Kolkata.

“It will be a pro-people budget and Bengal will smile. There will be a number of new projects. Private participation in Railways will increase manifold,” said a senior railway official.

Passenger fares are expected to remain unchanged in Didi's second budget in UPA 2, which she has already dedicated to the common man. A number of new trains are expected to be introduced and freight rates may rise to some extent.

Railways need Rs 80,000 cr to complete pending projects
NEW DELHI, 23 February: The Railway Ministry would need a stupendous investment of approximately Rs. 80,000 crore to complete the pending projects. The additional announcements of new projects in the forthcoming Railway Budget would escalate the Railway Ministry's to-do list manifold.

The pending projects include construction of new track lines, doubling of single line routes and gauge conversion works. It undoubtedly, would be a difficult task for Union Railway Minister, Mamata Banerjee to complete the piled up projects within restricted resources.

Rs 50,000cr fund to back GST
NEW DELHI, 23 February: The proposed Goods and Services Tax (GST) will be backed by a fund of Rs. 50,000 crore to initiate the nationwide tax regime.

"The fund would be set up for five years, with the Centre assuring a compensation of Rs 10,000 crore every year to states for any loss in revenue," an official said.

The new tax regime is set to offer a one-shot solution to the vicious web of levies within the indirect tax structure like value added tax, excise duty, surcharges etc.

Related announcements would be made in the forthcoming India Union Budget.

Exemption limit for medical, travel expenses to go up
NEW DELHI, 23 February: Government is likely to increase the exemption limit for reimbursement against medical and travel expenses in the upcoming Union Budget. A hike in exemption limit for the gratuity payment is also on the cards.

Currently, reimbursement upto Rs. 15,000 for the medical expenses and Rs. 800 against travel allowance is tax free, but the figures might change for better now. The Income Tax Department is now considering to revive the age-long set parameters.

Union Finance Minister, Pranab Mukherjee would unveil the finance budget on 26th February in the Parliament.

Opposition to pick on price rise and security
NEW DELHI, 23 February: The left parties are likely to corner the government on the issues of price rise and internal security during the upcoming Budget session.

The Opposition is against the introduction of Civil Liability for Nuclear Damage Bill. Besides, left parties along with Bhartiya Janta Party are also set to take up the revised fertilizer policy, which they unanimously feel would sabotage the farmers' interest.

“We are prepared to discuss any issue. If they [the Opposition] are very particular on the price rise discussion, we may consider it,” Parliamentary Affairs Minister Pawan Kumar Bansal said.

The presentation of Union Budget 2010 is scheduled for February 26th at Parliament.

15 more Duronto trains may be launched
NEW DELHI, 22 February: The railway ministry might launch 15 new Duronto Expresses in the upcoming Railway Budget. Durontos known for the nonstop end to end service has become quite popular among the masses.

The planned Durontos are expected to run on Mumbai-Chennai, Patna-Yesvantpur, Bhubaneswar-Varanasi, Lucknow-Guwahati, Guwahati-Chennai, Howrah-Chennai and Amritsar-Darbhanga routes.

“Durontos are reporting good occupancy rates. The trains provide faster travel at affordable prices. Services on board have also been appreciated,” said a senior official at the ministry.

Pre-Budget rally unlikely: Analysts
NEW DELHI, 22 February: A pre-Budget rally is quite unlikely this time as the market would be more influenced by the global cues than the domestic Union Budget.

"The expectations from the Budget are relatively low this time around. The market is expecting a Budget that is growth oriented and adheres to fiscal targets. It may not become euphoric this time before the Budget," Kotak Securities managing director Narayan SA said.

The market is looking forward towards clarity on aspects like disinvestment, Foreign Direct Investment (FDI) and stimulus package withdrawal, but the investors are also likely to track overseas cues to invest.

Budget may offer free LPG connections to BPL homes
NEW DELHI, 22 February: The upcoming Union Budget may bring along a fresh relief for the people living below poverty line as the government could announce the provision of a free LPG connection complete with cylinder and regulator, to every family living below poverty line (BPL).

The Cabinet is yet to approve the scheme. “The actual budgetary support would be known once the proposal is cleared by the Expenditure Finance Committee and the Cabinet,” said an official.

A token money of Rs. 1 crore has been set aside for the scheme as one time financial support to the benefiting families to pay the cylinder and regulator's security deposit. The refill cost would thereafter, be paid by the consumer himself.

Mamta unlikely to raise passenger fares in Rail Budget
NEW DELHI, 22 February: Railway Minister Mamata Banerjee is likely to present a pro-people Railway Budget in Lok Sabha on February 24, 2010. According to sources, Mamata may not increase the passenger fares, but a slight increase in air-conditioned class is possible.

Some new trains can be launched, including the launch of at least fifteen more Duronto Express trains.

The budget is likely to concentrate on maintaining cleanliness at platforms and trains.

Lack of power, low agro productivity hampering growth: PMEAC
NEW DELHI, 22 February: As per the Prime Minister's Economic Advisory Council (PMEAC) the two main hindrances in India's medium to long term growth are low agricultural productivity and lack of optimum amount of power generation.

With the Union Budget, 2010 just a few days away, PMEAC's analysis holds much significance.

"The Council is of the view that the two principal constraints to growth that face India in the medium to long term are low productivity in agriculture on the one hand and inadequate physical infrastructure on the other, of which, the most important component is the power sector," said (PMEAC).

PMEAC mentioned the constraints in its economy review on Friday.

The PM's council opined that a sustainable growth can only be achieved by focusing on the two lacking areas - agriculture and power sector.The country is said to bounce back to 9 percent growth by 2011-12.

Union Finance Minister, Pranab Mukherjee will present the Finance Budget 2010-11 on 26th February 2010 in Parliament.

Annual rate of inflation high by 1.25% as per WPI
NEW DELHI, 20 February: The country's food inflation is riding all time high with wholesale price index depicting a 16.23 percent of rise for primary articles and 9.89 percent rise for fuels.

The annual rate of inflation has registered a rise of 1.25 percent in the whole sale price index. The whole sale price inflation, which stood at 7.31 percent in December rose to 8.56 percent in January.

Union Finance minister Pranab Mukherjee, has maintained that inflation could only be controlled gradually as the remedial measures will take some time to revive the economy.

Common man would be looking forward for a relaxation in prices of basic day-to-day need commodities in the forthcoming budget.

The country is said to witness a moderate rate of inflation in the coming months.

Union Finance Budget would be tabled by Finance Minister Pranab Mukherjee, on February 26th in Parliament.

Fiscal deficit may cross 6.1% of GDP mark for FY2010
MUMBAI, 20 February: The fiscal deficit for the next financial year is targeted at 5.5 percent of the Gross Domestic Product (GDP).

The country's fiscal deficit to GDP ratio had withered from 2.6% in financial year 2008 to 5.9% in financial year 2009. The deficit ratio is expected to reach 6.1-6.7% for the FY 2010.

The spiraling inflation and tight fiscal position is the result of various concessions and tax reliefs introduced in the last financial year to overcome the global economic depression.

The upcoming Union Budget 2010-11 would mark the beginning of stimulus roll back.

Union Finance Minister, Pranab Mukherjee would table Budget 2010-11 on February 26th in Parliament.

Fiscal consolidation top priority for FM
MUMBAI, 19 February: Fiscal consolidation will undoubtedly be the top priority of finance ministry while presenting Budget 2010-11 on 26th February in Parliament.

It would be a tough call for Union Finance Minister, Pranab Mukherjee, to balance the withdrawal of stimulus packages without hampering the economic growth. Growing fiscal deficit in the current scenario calls for an immediate roll back of stimulus packages, which were provided to help the industries cope up with the global economic meltdown.

The most expected deductions, which Budget 2010 is set to bring along are service tax cut of 2 percentage point, withdrawal of interest subvention from few selected industries, excise rate reduction from automobile industry.

Excise and service tax should remain intact: India Inc
NEW DELHI, 19 February: With the stimulus rollback being the central theme of upcoming Union Budget, India Inc is lobbying hard to retain the excise and service tax as it is.

Corporate India unanimously opine that withdrawal of stimulus packages or increment in service and excise tax at the current stage can deflect the growth process.

"We are afraid that roll-back of stimulus packages, even partially, could derail the growth process and adversely impact the industrial sector," said, Mr. Hash Pati Singhania, President, FICCI.

The finance ministry in all probability, would be partially withdrawing the concessions and relief which was provided to the industry to combat the global economic depression.

The Union Finance Budget 2010-11 would be tabled on February 26th in Parliament.

Women's rights groups seeking more funds from Budget 2010-11
NEW DELHI, 19 February: The various organizations working specifically for distressed women have urged the Union Finance Minister, Pranab Mukherjee to allocate an increased amount of fund towards the women upliftment schemes.

Women Power Connect (WPC) in a petition to Finance Minister said,“Last year's budget speech was a big disappointment as a large part of the budgetary allocations showed a decline in the over all funds earmarked for the ministry of women and child development (MWCD). This year we hope that there is a substantial increase in funds for women friendly schemes and programmes under the MWCD".

Lack of funds with the women's rights groups is hindering the implementation of a number of schemes and programs.

Defence sector's wish-list for Budget 2010-11
CHENNAI, 19 February: The country's Defence sector is looking forward for ample amount of funds to upgrade the sector in upcoming Union Budget 2010-11.

Today India is being eyed by a number of global aerospace and defence companies as an alternate manufacturing base. Thus, the sector suggests that government can cash in this golden opportunity through various measures like introduction of the use of multipliers, well-defined SQRs (service quantitative requirements), Formulation of national industrialisation policy, extension of validity of offset banking, increased FDI (foreign direct investment) etc.

The Union Finance Minister, Pranab Mukherjee, will table the Union Budget 2010-11 on February 26th in Parliament.

Jewelry industry hopes for OGL on gold imports
MUMBAI, 19 February: The gems and jewelry industry has sought zero duty and open general license (OGL) on gold imports in the forthcoming Union Budget.

Introduction of OGL would allow jewelers to import gold at a much lower cost, thus, opening varied opportunities for the jewelry industry.

"The recession is receding and new hopes for the gems and jewelry sector are arising. The Government should allow gold imports under open general license (OGL) by any member of the All India Gems and Jewelry Development Council (the nodal official quasi Government body) having a certain annual revenue-earning or greater than Rs 50-crore," said Mr. C. Vinod Hayagriv, Chairman, All India Gems & Jewelry Trade Federation.

Budget should boost infra sector: Steel industry
MUMBAI, 18 February: The Steel industry is expecting a higher government spending on the infrastructure sector with the continuation of stimulus package.

A calculative push towards the infrastructure sector can be instrumental in boosting the alloy industry.

"In spite of our impressive GDP growth, infrastructure facilities remain inadequate. The budget has to provide impetus for major investments in infrastructure." said, S.K. Roongta, chairman, Steel Authority of India.

Union Finance Minister, Pranab Mukherjee is set to unveil Budget 2010-11 on 26th February, which will mark the withdrawal of concessions granted in the last fiscal year to cope up with global economic meltdown. The steel industry however, is hoping for the continuation of stimulus package to maintain the GDP growth rate.

Rural electrification top on agenda in Budget 2010-11
NEW DELHI,18 February: In a bid to percolate power supply to each and every corner of rural India, government may allocate a significant amount in the forthcoming Budget to cater to the rural electrification project.

Many corporate houses and Non-Government Organisations (NGOs) have come forward to support the project.

“Rural electrification is the top priority for us. It has come to our knowledge that private sector too wants to play its role in this process, so why not involve them officially then.” said congress MP, Manick Tagore.

Currently, a smooth power supply in rural India is one of the top most priorities of Indian government and thus, the dynamic project can find a strong referral in the upcoming Union Budget.

Rupee strengthens prior to Union Budget
NEW DELHI, 18 February: The Indian Rupee strengthens consecutively for the second session, with the rupee trade ending on 46.2125 against per dollar yesterday. A gain of approximately 0.24% was registered on the closing.

The apparent gain in rupee has become all the more significant as the Indian Union Budget is less than a fortnight away.

The dollar index lost against most of majors for the day while Euro and Pound recovered against it.

Hoping to discourage Chinese imports with Budget 2010-11: Power sector
NEW DELHI, 18 February: The low-priced Chinese power equipment imports pose a serious threat to the local manufacturers and hence, the heavy industries ministry has sought government's aid to address the crucial issue in the Union budget 2010-11.

Currently, power equipments for mega power projects enjoy a duty free import, while a negligible duty of 5 percent is imposed on the import of smaller power project equipments. On the flip side, China, levies a custom duty of as much as 30 percent on the heavy engineering equipment imports which makes it almost impossible for the Indian players to compete in the Chinese market.

Minister for Heavy Industries, Mr. Vilasrao Deshmukh stressed on the need of safeguarding the domestic industries from foreign competition and hence, suggested a 10 percent custom duty on power equipment imports from all the countries other than China which can be entitled for an additional 5 percent import duty.

The import issue has though, raised a contradictory situation within the power sector. On one side the heavy equipment manufacturers like BHEL and L&T are favoring the import duty on Chinese products while the power producers on the other hand, are apprehensive about the duty.

Education sector expects its due from Budget 2010-11
NEW DELHI, 18 February: The Centre for Budget and Governance Accountability (CBGA) and Oxfam India has asked for an increased allocation of funds in the Union budget 2010-11 to support the various health and education schemes.

The education sector was promised a public spending of six percent of GDP, but the actual spending on the sector remains almost half of the promised amount.

''Our concern is where would the common man, who forms the heart of the budget, stands in the Union Budget 2010. There is a need for greater allocation for the health and education schemes besides better utilisation of resources, accountability and commitment towards them.''said Nisha Agrawal, Chief Executive Officer, Oxfam India.

The expectations are riding high on the Union Finance Minister, Pranab Mukherjee, who, will table the Union Budget 2010-11 on February 26 in Parliament.

India Inc wants stimulus package to continue
NEW DELHI, 18 February: India Inc is desperately looking forward towards the continuation of stimulus package for another fiscal year. With the Union Budget 2010-11 just around the corner, the industry is counting on Union Finance Minister, Pranab Mukherjee, for the extension of stimulus package, which was introduced to help the economy cope up with the global economic meltdown.

Ironically, the fiscal deficit for the financial year 2010 has reached a 16 year high with 6.8 percent of GDP and that's why the withdrawal of the stimulus package has become the need of the hour.

A 2 percentage points increase in the Cenvat rate for excise duty might be the first step towards the fiscal stimulus rollback in the Union Budget 2010-11.

FMCG industry expects the continuation of stimulus package
CHENNAI, 18 February: With the FMCG sector eying the rural areas as new-found potential markets, it expects the government to retain the stimulus package to push up the rate of growth a few notches further.

The FMCG sector is anxiously waiting for the Goods and Services (GST) to be implemented since the formerly mentioned tax regime would put an end to the ambiguous paper work and descending price effects.

GST would be instrumental in replacing the indirect taxes imposed on FMCG products.

Ariyalur-Thanjavur line awaits funds
THANJAVUR, 17 February: With the railway budget less than a fortnight away, Tamil Nadu's Thanjavur district, eagerly awaits for the allocation of requisite funds to trigger the much delayed, Ariyalur-Thanjavur railway line project.

The estimated cost of the 58 km track line is Rs. 250 crore.

“We hope that the allotment is made in this budget as the announcement for laying the new line came three years back. Survey has also been completed,” said K. R. Annamalai, President, Thanjavur Chamber of Industries and Commerce.

The Ariyalur-Thanjavur railway line project stands immediate and essential for the fact that there is no direct connectivity between the two places. Such an absence of a direct commuting connection hinders the district's crucial economic activity of transportation of coal from the port to the various cement factories and thermal plants.

A direct access from Ariyalur to Thanjavur would also prove convenient to the travelers.

Sugar mills seek tax relief in Budget
NEW DELHI, 17 February: The Indian Sugar Mills Association (Isma), has sought the withdrawal of 20 percent tax regime for the coming season starting this October. In a pre-budget memorandum, the association has also exhorted the government to suspend the policy, which exempts imported sugar from stock holding limits.

The exemptions have been encouraging bulk consumers to buy imported sugar, thereby hitting the local sugar industry hard. Besides, the weekly dispatch mechanism for sugar mills has added to the grievances of the industry.

"We suggest a rollback of regulatory measures and withdrawal of levy obligation from the ensuing sugar season 2010-11," the Isma memorandum said.

The association's list of demands also includes the extension of tax-exemption for co-generation power units of sugar mills.

High expectations from Budget 2010-11: Tourism Industry
NEW DELHI, 16 February: Ministry of Tourism (MoT) has pinned high hopes on the forthcoming Union Budget 2010-11. The industry this time expects the finance ministry to address all the relevant issues which have long been neglected.

MoT seeks service tax exemption for the sector on the lines of fellow export industry. Besides, with the Cruise Tourism gaining more and more attraction, MoT is said to recommend nearly 70 percent relaxation on service tax for the cruise operators. Apart from looking forward for a better infrastructure of the nation's hotel industry, MoT has also asked for the revival of incentives under 80HHD of Income Tax Act for the Tourism sector.

IT sector waits anxiously for Budget 2010-11
MUMBAI, 16 February: Country's IT sector is waiting expectantly for the upcoming Union Budget 2010-11 as the industry is hoping for a tax holiday under the Software Technology Park (STP) scheme.

With the sunset clause, under section 10 A and 10 B, coming to an end, a tax holiday for the companies operating in software technology parks can be allowed.

Presently, the IT sector's effective tax rate builds up to around 20 per cent inclusive of a minimum alternative tax of 15 to 19 percent, but if the STPI scheme is withdrawn, the industry straightaway would have to bear a corporate tax of over 33 percent.

Nation's apex software body NASSCOM, on its part, has been lobbying hard with the government for the tax holidays to continue, but its the Budget 2010-11, which would decide the fate of country's IT industry.

Telecom sector seeking fresh incentives in the upcoming Budget
NEW DELHI, 16 February: The telecom sector, like all other sectors, is too, hoping for some incentives from the Union Finance Budget 2010-11.

The telecom industry would be looking forward for requisite announcements regarding the growth of telecom equipment manufacturing segment and the popularization of m-commerce. Relaxation of severe tax-regime would eternally top the sector's demand list.

The industry seeks a unified tax rate system, since it has to serve the dual taxes of Central and State-level, making the sector loose as much as 30 per cent of its revenues.

Also, the absence of transparent and precise policies along with complex tax structure hinder the dynamic mergers and acquisitions in the industry.

The telecom manufacturing industry too, is expecting the availability of cheap and easy credit to boost up production and expanding the scope of exports.

Budget may continue stimulus for export sector
NEW DELHI, 15 February: Certain segments of export sector are likely to enjoy extended fiscal incentives in the Union Budget 2010-11. The forthcoming Union Budget 2010-11 is likely to continue with most of the fiscal incentives extended for various segments of export sector. Finance Minister, Pranab Mukherjee, is likely to continue with most of the fiscal incentives for exporters given the loss of strong recovery in demand cycle in west. The Commerce ministry has already briefed the Finance Minister about the export industry's acute need of stimulus packages.

The Unit of Internal Assessment (UIA) of the finance ministry is said to have advocated the continuation of stimulus packages for export sector, specifically for the segments, which are yet to show the signs of recovery.

The forthcoming union budget might extend the two per cent interest subsidy on export credit for another six months, but only for few chosen segments.

Karnataka CM to present state's wish-list for Railway Budget 2010-11
BANGALORE, 15 February: Karnataka Chief minister, B S Yeddyurappa, is set to present the state's wish-list regarding Railway Budget to Union railway minister Mamata Banerjee on Monday.

The proposal's main focus would loom around the significance of streamlining the trains and its routes in North Karnataka. Besides, the wish- list would also include state's demand for new trains, railway lines etc.

"Karnataka has been neglected in the railway budgets over the past few years. This time, we have high expectations considering the numbers of ministers we have at the Centre," said, Yeddyurappa.

Banerjee would be asked to pay attention towards the need of new projects, extension in routes and increase in frequency, moreover, an increased allocation of funds would also be asked for the ongoing surveys in the Railway Budget 2010-2011.

CM held a meeting with all the Union Ministers and MPs of the state before holding talks with Banerjee.

Rationalization of taxes is must: CII
New Delhi, 15 February: Industry chamber Confederation of Indian Industry (CII) hopes for a rapid industry growth with the upcoming Union Budget 2010-11. CII feels that rationalization of direct taxes can be quite instrumental in helping the manufacturing sector to flourish by leaps and bounds.

In its pre-Budget proposal, CII highlighted the importance of investment-linked fiscal incentives owing to the ever increasing interest rates due to contracting monetary policy.

This year too the fiscal incentives for the chosen sectors could be similar as the previous year's like warehousing facilities for storing farm produce, setting up of cold chain, in laying and operating cross-country natural gas or petroleum oil pipeline network for distribution on common carrier principal etc.

“While the current IIP growth figures are encouraging, account needs to be taken of the fact that the impressive figures are owing to a very positive base effect,” said CII.

CII has also been upfront about the rationalization of minimum alternative tax (MAT) which has been gradually increasing for past few years. The chamber is expecting a substantial deduction in MAT as it restricts the scope of incentives to the industry.

Exports to be reviewed after Budget
NEW DELHI, 15 February: The commerce department may review all the export incentives after the forthcoming Union Budget 2010-11, in order to allocate the resources more competently in the new fiscal year.

“Once we know the funds that the finance ministry is willing to sanction to us for the next fiscal, we will work out which are the sectors where our support should continue and where it could be possibly withdrawn.” said an industry official.

The finance ministry is supposed to take a call on continuing the various interest rates or discount on loans for a few chosen export sectors. In December 2008, government had supported few recession stricken export sectors with perks like interest rate subvention, enhanced monetary allocation towards export incentive schemes, guaranteed back-up etc.

Most of these incentives were continued in 2009-2010 fiscal, but now the government has to withdraw the stimulus package in order to control the fiscal deficit. Though the exporters feel that it wouldn't be sound to withdraw stimulus at the current stage since the growth in the western market could be momentary.

Real estate players pin high hopes on Budget '10
NEW DELHI, 14 February: The major players of real estate industry have lined up their demands and expectations from the forthcoming Union budget 2010-11. The developers expect the government to pay special attention towards this sector and come up with requisite incentives and schemes, benefiting the real estate industry.

The industry is looking forward for stabilized bank interest rates and reduced stamp duty in the upcoming Budget, since the formerly mentioned are the major reasons for the potential buyers to back out. Besides, they also expect more transparency and simplicity in the various processes involved while dealing in real estate sector.

While affordable housing eternally remains the realty sector's top concern, it also seeks high-priority provisions from the government for laying down the necessary infrastructure to open up new areas.

Majority of the industry people want the government to put down firm principles in terms of property dealings and quality parameters in terms of rating of constructions. Also, flexibility in FDI norms would be welcomed by the real estate players.

2 percentage point excise hike expected in budget
NEW DELHI: The Finance Ministry may start the first phase of fiscal withdrawal in the forthcoming Union Budget 2010-11. The Cenvat rate for excise duty is expected to rise by 2 percentage points. Indian economy has been showing the signs of growth revival lately, and hence Union Finance Minister Mr. Pranab Mukherjee might headstart the stimulus rollback.

Raising the excise duty would be the first step towards mending the fiscal deficit.Earlier, in order to overcome the global economic crisis, government had slashed the Cenvat rate for excise duty from 14 to 8 per cent. Now, since the economy is recovering from the global slump, partial rollback of such tax concessions has become necessary.

The government considers the 2 percentage point increase in excise duty quite moderate. Industries like consumer durables and automobile has registered a remarkable growth in the recent past, hence, the excise hike is expected to be absorbed easily.

Traders hoping a feed on STT status
MUMBAI: The Day traders in export market are looking forward for an update regarding the Securities Transaction Tax (STT) by the Union Finance Minister Mr. Pranab Mukherjee in the forthcoming Union Budget.

As per the government’s proposed Direct Tax Code (DTC), STT is very likely to be abolished. The new tax code, DTC, has been welcomed by the Day-Trading community which, would do away with the STT in all probability thus, a change in STT is unlikely.

Rajesh Baheti, MD, Crosseas Capital Services, a Mumbai based arbitrage trading company said “I personally feel the FM is unlikely to propose any changes in STT in his Budget, with the government already planning to do away with the tax as part of DTC implementation.”Government has been collecting an incremental amount of tax since the introduction of STT in the 2004-05 Budget.

Currently, STT is charged at the rate of 0.125% on a delivery-based buy as well as sell transactions while 0.025% on non delivery-based sale transactions. The rate for F&O sale transactions is 0.017%.

The introduction of Direct Tax Code or the DTC is expected from April 2011 onwards.

Economic growth to exceed the estimated 7.2% mark: FM
NEW DELHI: Union Finance Minister Mr. Pranab Mukherjee today contradicted the estimation of Central Statistical Organisation (CSO) by saying that the economic growth for the current financial year would be higher than the advance estimate forecast of 7.2 per cent.

The advance estimates released by CSO earlier this week, estimated the economic growth at 7.2 percent, a few notches lower than the finance ministry's mid-term review of 7.75 percent.

Mr. Mukherjee's estimation of economic growth is running parallel to the Reserve Bank of India (RBI) which has made an estimate forecast of 7.5 percent of economic growth in its third quarter monetary policy review.

Tax benefits should not be withdrawn: MF industry
NEW DELHI: The mutual fund (MF) industry expects the finance ministry to retain the existing tax benefits available to investors in MF schemes in the forthcoming Union budget.The industry is hoping for the continuation of tax benefits on MFs particularly the exempt-exempt-exempt (EEE) system on tax-saving funds or equity-linked savings schemes (ELSS) of MFs which renders all the investment, interest and maturity tax-free for the investor.

Withdrawal of tax benefits would effect the mutual fund industry adversely as it is already struggling to make its way out from the global economic crisis. Besides, there have been a number of policy changes in the past one year hence, the industry seeks the continuation of tax redemption together with the extension of zero-dividend distribution tax on equity funds to attract investments.

"We want more clarity on the implementation of the EET system on MFs because a lot of future decisions would depend on it." said Gopal Agarwal, Equity Head of Mirrae Assets.

PMEAC offers a Roadmap for Stimulus Exit
NEW DELHI: The Prime Minister's Economic Advisory Council or PMEAC has suggested a systematic roadmap in the Union Budget regarding the stimulus exit for the fiscal year 2011.

The PMEAC chairman Mr. C. Rangarajan told the media today that “A roadmap towards normalization is needed as the stimulus exit must be done in a phased manner.”

He welcomed the introduction of Goods and Services Tax (GST), which would channelize the indirect taxes like Excise and Service tax at the Centre while VAT and Octroi at the state level. The proposed GST may implement from April 1, 2010 onwards.

Allow export incentives to stabilize export growth
KOLKATA: Union Finance Minister Mr. Pranab Mukherjee has been urged to continue with the export incentive in the Union Budget 2010-2011 to sustain growth and stability in the export sector. Union minister of state for commerce & industry Mr. Jyotiraditya Scindia at an interactive session said “We’ve urged the finance minister to offer cheap dollar credit at 1% over Libor (London Interbank Offered Rate) to exporters, against the present 3.5% over Libor. We’ve also asked the finance ministry to extend the 2% interest subvention scheme on rupee export credit and benefits enjoyed by EoU units.”

Incidentally, last year Reserve Bank of India (RBI) had extended the incentive from September 30, 2009 to March 31, 2010 to support the labour-intensive sectors like textiles, carpets, handicrafts etc. which were badly hit due to the demand slump in US and Japan.

Gujarat MSMEs apprehensive about GST
GUJRAT: The proposed Goods and Service Tax (GST) has been vehemently opposed by the trade and industry sector of Gujarat. The new tax structure – GST is to be levied on all the companies and traders with an annual turnover of Rs 10 lakhs and above.

Government aims at streamlining the movement of goods throughout the country with a single tax structure but the industry feels that the implementation of such a tax system would affect the MSMEs since the sector is still recovering from the economic crisis.

“The proposed tax structure and the move to bring the companies with turnover as low as Rs 10 lakh under the regime will make it difficult for them to survive,” said Rupesh Shah, President of the Gujarat Chamber of Commerce and Industry (GCCI). Around 90 percent of the 6 lakh MSMEs would be covered under the proposed act.

MSMEs have high expectations from Budget
DEHRA DUN: The MSME lobby in Uttarakhand has pinned high hopes on the upcoming Union Budget.The Industries Association of Uttarakhand (IAU), has called for various tax benefits and price purchase preference policies to boost the MSMEs.

IAU has asked for an enhanced depreciation on IT products so as to encourage the use of Information and communication technology (ICT) among the MSMEs. Besides, they are also looking forward to the formulation of price purchase preference policy which enables the centre and state government to stay updated with the notifications regarding the preference policies for buying goods and services.

Amendments in various employee related regulation acts like Employees State Insurance, Provident Fund etc. have also been asked. The credit rating system is another major issue which needs to be revived and made transparent.

Budget 2010-11 may skip Corporate tax cut

NEW DELHI: Despite intense lobbying from the industry to bring in concessions to the corporate tax regime, the government may not dabble with rates or at least do away with the surcharge and cess or additional tax.

The industry has been seeking a reduction in corporate tax rate from the existing 30% to 25%. Currently, domestic firms with an annual income of over Rs 1 crore have to pay 30% corporate tax. Besides, a surcharge of 10% and an education cess of 3%, taking the total tax liability to 33.99%. Those earning up to Rs 1crore draw a total tax liability of 30.9%.

A senior Finance Ministry official said that Corporate tax rates could be kept at the same level and the industry may have to wait for fiscal 2011-12 for the rate to be 25% as proposed in the draft direct taxes code.

Sonia, Mamata inaugurate 12 new trains together
KANPUR: UPA chairperson Sonia Gandhi and Trinamool Congress chief Mamata Banerjee flagged off 12 new trains including two Duranto and a Shatabdi, from here on Sunday.

Speaking on the occasion, Mrs Gandhi said, "I want to place Uttar Pradesh on the trajectory of growth but it is possible only when all the parties rise above petty politics and support the Central government". Gandhi said it was because of the policies pursued by the UPA government that the country was not much affected by the global financial meltdown.

"The government ensured sufficient financial assistance to all the states, though it is a different issue whether the funds were rightly utilized," said Gandhi.

Ms. Gandhi and Railway Minister Ms. Banerjee flagged off the new trains, originating from different cities in Uttar Pradesh to various destinations in the country, at the function.

The event was attended by the Minister of State for Railways E Ahmed and K H Muniyappa, local Congress MP Sriprakash Jaiswal and several other leaders.

Mamata seeks industry inputs for Rly Budget
NEW DELHI: Union Railway Minister Mamata Banerjee interacted with the major industry associations and industry representatives on Sunday in an effort to frame a suitable Railway budget.

At the pre-budget meeting, Mamata considered the views and proposals of the industry people for the betterment of Railways and also welcomed the innovative ideas and suggestions regarding the public-private partnership (PPP) for various existing and future Railway projects

Apart from the Railway Board chairman Mr. SS Khurana and all the board members, the pre-budget meeting saw the attendance of eminent representatives from PHD Chamber of commerce and industry, ASSOCHAM, CII, FICCI etc.

In its suggestion for the expansion of public private partnership (PPP) in Railways, Confederation of Indian Industry (CII) said, "The PPP engagements need to be clearly segregated from outsourcing tasks of the Railways and must essentially involve sharing of risks and rewards on investments between both partners in the process."

The Railway Budget 2010-2011 will be presented in the Lok Sabha on February 24, 2010.

Budget 2010-11 to boost SME I-T sector
NEW DELHI, 5 February: The upcoming Union Budget 2010-11, which will be presented in Parliament by Union finance minister Pranab Mukherjee on February 26, is likely to include new norms for granting government I-T contracts which could result in ending the monopoly of I-T giants in the servicing sector.

The new I-T norms would be introduced to boost the Small and Medium Enterprises(SME's). As per the planned norms, the government's major I-T outsourcing contracts may now have to be shared with the SME players.

Mr. Shankar Aggarwal, Joint secretary, Ministry of Information Technology, said, "We will introduce a condition in our RFP that whoever gets the contract has to get at least 20 per cent of his work, that is 20 per cent of the goods and services have to be procured from the SME sector. And then they have to submit a certificate to that effect." On asking about IT giants' resistance towards such a clause, Aggarwal said, "Even today the IT majors are getting work done through the SMEs. It's just not in a formal manner. It's between the big and small player, and the government is playing no role. But if we introduce this condition then it will be obligatory on the part of the bigger player to get work done through the SMEs."

So far, most of the government's I-T contracts have been seized by the bigwigs of the industry like Infosys and TCS but now with the public sector's I-T spending reaching more than 5 billion dollars, SME sector stands a strong chance of economic aid from the government side.