Budget 2014

17Jul

Budget 2014 – A Look At The Good And Bad Points Of The Budget By MODI Government

Here is an overview on the points of budget presented by the FM Jaitley, whether it is best or worst for the future of the economy of the country as well as for the uplift of the citizens. First start with the good ones which are followed by the bad one.

GOOD FOR US
Economy – The Budget announced could lead the economy back to the expected growth levels of 7-8% in the next three to four years. The government also aiming to strengthen the macro-economy with shortening degree of inflation, narrow fiscal deficit and a controllable current account deficit.

Fiscal Deficit – The government is going to retain the target of fiscal deficit target set in the interim budget as 4.1% of the Gross Domestic Product (GDP). GDP is the magnifier of the economy. The budget presented this year also set the targets for next financial years at 3.6% in 2015-16 and 2016-17 at 3% of the GDP. This is the indication of the wider view and futuristic approach of the government on fiscal consolidation.

Sanitation – The government supporting the ‘Swatchh Bharat Abhiyan’ scheme to cover every household with sanitation in the country (specially villages) by 2019. Year 2019 is the 150th birth anniversary year of Mahatma Gandhi.

Smarter Cities – PM Narendra Modi envisions creation of 100 smart cities as satellite towns in our country. For this purpose, the minister allocated Rs 7,060 crore in the Budget. This is a good news for infrastructure and real estate sector.

Irrigation – To improve access to irrigation, the minister has proposed to set aside a sum of Rs 1,000 crore under the scheme ‘Pradhan Mantri Krishi Sinchayee Yojana’.

Indirect Tax – The government implies taxes on industries for production of goods and services. It also charges an amount for import of goods. The government has reduced basic custom duties on certain items which are used as raw materials to encourage investment and domestic production. This tax cost is usually passed onto consumers. As a result, a change in indirect tax often leads to a rise or fall in retail prices of goods to end-consumers.

Demat Account – The finance minister announced a good news for the investors that they can now operate all their financial products through a single operating demat account. This might be possible through, Know Your Customer (KYC) norms which will be uniform all across the financial sector. This means, now one can access the fixed deposits and other investments through single demat account.
PSU banks – A committee of RBI had recommended that the government give greater autonomy to PSU banks to help in the improvement of their profitability. The government has consider this point and given its in principle nod.

Senior Citizen Pension – During its last term in office, the NDA government had introduced the Varishtha Pension Bima Yojana (VPBY) as a pension scheme for senior citizens. Under which a total number of 3.16 lakh annuitants are being benefitted and the corpus amounts to Rs 6,095 crore. The government proposed to revive the scheme for a limited period from 15 August, 2014 to 14 August, 2015 for the benefit of citizens aged 60 years and above. FM also proposed to set up a committee to try and use the large amounts lying in unclaimed PPF, Post Office and savings accounts for senior citizens.

Real estate – The sector is the biggest beneficiary of this year’s union budget. The finance minister proposed to increase foreign direct investment in real estate, especially in the area of low-cost housing.

Housing – In a bid to ease tax burden on the common man, the Budget also increased tax exemption on the interest payments on home loans by Rs 50,000 to Rs 2 lakh per annum. This could help fuel demand for real estate companies as well as home loans from banks.

Airports – A scheme for development of new airports in Tier I and Tier II cities will be launched for implementation through Airport Authority of India or PPPs to increase air connectivity.

Personal Tax – Finance Minister increased the minimum taxable income to Rs 2.5 lakh from Rs 2 lakh earlier. The same threshold for senior citizens has also been hiked by Rs 50,000 to Rs 3 lakh from Rs 2.5 lakh earlier.

Tax-exempt Investments – Their is certain tax exempted under the Section 80C of the Income Tax Act, so one can lower the taxable income by Rs 1 lakh by investing in financial instruments like insurance and mutual funds. This limit has been increased to Rs 1.5 lakh from Rs 1 lakh earlier. Thus, one can save more on the taxes.

Public-Provident Fund – PPF is one of the most common investment options used for tax-saving purposes. The government had earlier limited the annual tax-exempted amount to Rs 1 lakh. This has now been raised to Rs 1,50,000.

Tourism – To boost tourism in India, the facility of Electronic Travel Authorization (e-Visa) would be introduced in a phased manner at 9 airports in India where necessary infrastructure would be put in place within the next six months. The countries to which the Electronic Travel authorization facility would be extended would be identified in a phased manner. This would further facilitate the visa-on-arrival facility.

MSMEs – The micro, small and medium enterprises (MSMEs) sector found a mention in the budget. Highlighting the importance of the sector as the backbone of the economy, the finance minister proposed to appoint a committee with representatives from the Finance Ministry, Ministry of MSME and RBI to give concrete suggestions in 3 months on improving financing. He also proposed to establish a Rs 10,000 crore fund to act as a catalyst to attract private capital by way of providing equity, loans and other risk capital for start-up companies. Also, MSME will be reviewed to provide for a higher capital ceiling. This will help companies get funds easier.

Niche Banks – The finance ministry with RBI, creating a framework for licensing small banks and other differentiated banks. Differentiated banks serving niche interests, local area banks, payment banks etc. are contemplated to meet credit and remittance needs of small businesses, unorganized sector, low income households, farmers and migrant work force. This would help encourage financial inclusion.

Roads – The government aiming to construct 8,500 km of roads in the current financial year with the investment in National Highways Authority of India and State Roads of an amount of Rs 37,880 crores, which includes Rs 3,000 crores for the North Eastern region.

Others
Rs 14389 crore for Pradhan Mantri Gram Sadak Yojana
MNREGA–Wage employment would be provided with more productivity led projects.
5 New IITs and IIMs in India
Rs 100 crore provided to the National Sports Academies in major parts of India for track and field events as well as for Sports University in Manipur.
In insurance sector composite FDI cap raised to 49% from 26%
20 new industrial corridors to be set up
Encourage entrepreneurship- Easy exit, incubation and accelerator programme set up
New Solar power projects in Rajasthan and Ladakh.
Introduction of uniform KYC norms across financial sector
Exemption limit higher for senior citizens to Rs 300,000

BAD FOR US

Tax Revenue – There is an urgent need to generate more resources to fuel the economy,for this purpose, the government increased the tax-to-GDP ratio through an increase in tax revenue. Decline in fiscal deficit from 5.7% of GDP in 2011-12 to 4.8% in 2012-13, so the desired one could be achieved by implementing the Goods and Services Tax (GST), which could be finalized by this year.

GAAR – The market is disappointed that retrospective taxation through the General Anti-Avoidance Rules (GAAR) announcement in the 2012-13 Budget has not been scrapped altogether. The BJP too had criticized the rules. The finance minister merely tried to reassure investors by reinforcing the government’s goal of an investment-friendly regime.

Sardar Patel statue – The budget has allocated Rs 200 crore to help the Gujarat government install a statue of Sardar Vallabhai Patel. At a time when the government is facing a wide fiscal deficit and slow economy, this allocation could have been avoided.

Disinvestment – The finance minister has not uttered the word disinvestment in the speech. This is one source of non-tax revenue that could have helped the government pay for the expenditure. There are indications of a sale of government stake in PSU banks to help them raise capital. The budget also expects that capital revenue receipts other than borrowings will be Rs 73,952 crore. This could be from disinvestment. However, there is no clarity on this issue.

Subsidies – There was a lot of talk about a prudent fiscal policy and the need to undertake bold reforms. This led to expectations of a cut in subsidies to help narrow fiscal deficit – the amount government borrows to fund the gap between expenditure and revenue. The government will review food and fuel subsidies and a committee would be formed, the finance minister said. This means the government has essentially delayed a decision on subsidies. Although, non-Plan expenditure a major portion of which is subsidies has risen marginally in this budget. Additional amounts have been provided for fertilizer subsidy and capital expenditure of Armed Forces.

For more details check out our budget express!

11Jul

Highlights of Budget 2014 – THE CURRENT ECONOMIC SITUATION AND THE CHALLENGES – Part 6

BUDGET ESTIMATES AND TAX PROPOSALS

BUDGET ESTIMATES

  • Mandate to be fulfilled without compromising fiscal consolidation.
  • Non-plan Expenditure of Rs. 12,19,892 crore with additional provision for fertilizer subsidy and Capital expenditure for Armed forces.
  • Rs. 5,75,000 crore Plan expenditure – increase of 26.9 per cent over actuals of 2013-14.
  • Plan increase targeted towards Agriculture, capacity creation in Health and Education, Rural Roads and National Highways Infrastructure, Railways network expansion, clean energy initiatives, development of water resources and river conservation plans.
  • Total expenditure of Rs.17,94,892 crore estimated.
  • Gross Tax receipts of Rs. 13,64,524 crore estimated.
  • Net to centre of Rs. 9,77,258 crore estimated.
  • Fiscal deficit of 4.1% of GDP and Revenue deficit of 2.9% estimated.
  • New Statement to separately show plan allocation made for North Eastern Region. Allocation of Rs. 53,706 crore for North East Regions.
  • Allocation of Rs. 50,548 crore under SCSP and Rs. 32,387 under TSP.
  • Allocation for women at Rs. 98,030 crore and for children at Rs. 81,075 crore.


TAX PROPOSALS

  • Ambitious Revenue Collection Targets in Interim Budget. Proposed tax changes factored in the Budget Estimates 2014-15
  • Measures to revive the economy, promote investment in manufacturing, rationalize tax provisions to reduce litigation, address the problem of inverted duty structure in certain areas. Tax reliefs to individual tax payers.

DIRECT TAXES PROPOSALS

  • Personal Income-tax exemption limit raised by Rs. 50,000/- that is, from Rs. 2 lakh to Rs.2.5 lakh in the case of individual taxpayers, below the age of 60 years. Exemption limit raised from Rs. 2.5 lakh to Rs. 3 lakh in the case of senior citizens.
  • No change in the rate of surcharge either for the corporates or the individuals, HUFs, firms etc.
  • The education cess to continue at 3 percent.
  • Investment limit under section 80C of the Income-tax Act raised from Rs. 1 lakh to Rs. 1.5 lakh.
  • Deduction limit on account of interest on loan in respect of self occupied house property raised from Rs. 1.5 lakh to Rs. 2 lakh.
  • Conducive tax regime to Infrastructure Investment Trusts and Real Estate Investment Trusts to be set up in accordance with regulations of the Securities and Exchange Board of India.
  • Investment allowance at the rate of 15 percent to a manufacturing company that invests more than Rs. 25 crore in any year in new plant and machinery. The benefit to be available for three years i.e. for investments upto 31.03.2017.
  • Investment linked deduction extended to two new sectors, namely, slurry pipelines for the transportation of iron ore, and semi-conductor wafer fabrication manufacturing units.
  • 10 year tax holiday extended to the undertakings which begin generation, distribution and transmission of power by 31.03.2017.
  • Income arising to foreign portfolio investors from transaction in securities to be treated as capital gains.
  • Concessional rate of 15 percent on foreign dividends without any sunset date to be continued.
  • The eligible date of borrowing in foreign currency extended from 30.06.2015 to 30.06.2017 for a concessional tax rate of 5 percent on interest payments. Tax incentive extended to all types of bonds instead of only infrastructure bonds.
  • Introduction of a “Roll Back” provision in the Advanced Pricing Agreement (APA) scheme so that an APA entered into for future transactions is also applicable to international transactions undertaken in previous four years in specified circumstances.
  • Introduction of range concept for determination of arm’s length price in transfer pricing regulations.
  • To allow use of multiple year data for comparability analysis under transfer pricing regulations.
  • To remove tax arbitrage, rate of tax on long term capital gains increased from 10 percent to 20 percent on transfer of units of Mutual Funds, other than equity oriented funds.
  • Income and dividend distribution tax to be levied on gross amount instead of amount paid net of taxes.
  • In case of non deduction of tax on payments, 30% of such payments will be disallowed instead of 100 percent.
  • Government to review the DTC in its present shape and take a view in the whole matter.
  • 60 more Ayakar Seva Kendras to be opened during the current financial year to promote excellence in service delivery.
  • Net Effect of the direct tax proposals to result in revenue loss of Rs. 22,200 crore.

INDIRECT TAXES PROPOSALS

  • To boost domestic manufacture and to address the issue of inverted duties, basic customs duty (BCD) reduced on certain items.
  • To encourage new investment and capacity addition in the chemicals and petrochemicals sector, basic customs duty reduced on certain items.
  • Steps taken to boost domestic production of electronic items and reduce our dependence on imports. These include imposition of basic customs duty on certain items falling outside the purview of IT Agreement, exemption from SAD on inputs/components for PC manufacturing, imposition of education cess on imported electronic products for parity etc.
  • Colour picture tubes exempted from basic customs duty to make cathode ray TVs cheaper and more affordable to weaker sections.
  • To encourage production of LCD and LED TVs below 19 inches in India, basic customs duty on LCD and LED TV panels of below 19 inches reduced from 10 percent to Nil.
  • To give an impetus to the stainless steel industry, increase in basic customs duty on imported flat-rolled products of stainless steel from 5 % to 7.5 % .
  • Concessional basic customs duty of 5 % extended to machinery and equipment required for setting up of a project for solar energy production.
  • Specified inputs for use in the manufacture of EVA sheets and back sheets and flat copper wire for the manufacture of PV ribbons exempted from basic customs duty.
  • Reduction in basic customs duty from 10 percent to 5 percent on forged steel rings used in the manufacture of bearings of wind operated electricity generators. Exemption from SAD of 4 percent on parts and raw materials required for the manufacture of wind operated generators.
  • Concessional basic customs duty of 5 percent on machinery and equipment required for setting up of compressed biogas plants (Bio-CNG).
  • Anthracite coal, bituminous coal, coking coal, steam coal and other coal to attract 2.5 % basic customs duty and 2 per cent CVD to eliminate all assessment disputes and transaction costs associated with testing of various parameters of coal.
  • Basic customs duty on metallurgical coke increased from Nil to 2.5 % in line with the duty on coking coal.
  • Duty on ship breaking scrap and melting scrap of iron or steel rationalized by reducing the basic customs duty on ships imported for breaking up from 5 percent to 2.5 percent.
  • To prevent mis-use and avoid assessment disputes, basic customs duty on semi-processed, half cut or broken diamonds, cut and polished diamonds and coloured gemstones rationalized at 2.5 percent.
  • To encourage exports, pre-forms of precious and semi-precious stones exempted from basic customs duty.
  • Duty free entitlement for import of trimmings, embellishments and other specified items increased from 3 percent to 5 percent of the value of their export, for readymade garments.
  • Export duty on bauxite increased from 10 percent to 20 percent.
  • For passenger facilitation, free baggage allowance increased from Rs.35,000 to Rs.45,000.
  • To incentivize expansion of processing capacity, reduction in excise duty on specified food processing and packaging machinery from 10 percent to 6 percent.
  • Reduction in the excise duty from 12 percent to 6 percent on footwear of retail price exceeding Rs. 500 per pair but not exceeding Rs. 1,000 per pair.
  • Withdraw concessional excise duty (2 % without Cenvat benefit and 6 % with Cenvat benefit) on smart cards and a uniform excise duty at 12 % .
  • To develop renewable energy, various items exempted from excise duty.
  • Exemption to PSF and PFY manufactured from plastic waste and scrap including PET bottles from excise duty with effect from 29th June, 2010 to 7th May, 2012.
  • Prospective levy of a nominal duty of 2 % without Cenvat benefit and 6 % with Cenvat benefit on such PSF and PFY.
  • Concessional excise duty of 2 percent without Cenvat benefit and 6 percent with Cenvat benefit on sports gloves.
  • Specific rates of excise duty increased on cigrettes in the range of 11 % to 72 % .
  • Excise duty increased from 12 % to 16 % on pan masala, from 50 – 55 % on unmanufactured tobacco and from 60 – 70 % on gutkha and chewing tobacco.
  • Levy of an additional duty of excise at 5 percent on aerated waters containing added sugar.
  • To finance Clean Environment initiatives, Clean Energy Cess increased from Rs.50 per tonne to Rs.100 per tonne.

Service tax

  • To broaden the tax base in Service Tax, sale of space or time for advertisements in broadcast media, extended to cover such sales on other segments like online and mobile advertising. Sale of space for advertisements in print media however would remain excluded from service tax. Service provided by radio-taxis brought under service tax.
  • Services by air-conditioned contract carriages and technical testing of newly developed drugs on human participants brought under service tax.
  • Provision of services rules to be amended and tax incidence to be reduced on transport of goods through coastal vessels to promote Indian Shipping industry.
  • Services provided by Indian tour operators to foreign tourists in relation to a tour wholly conducted outside India to be taken out of the tax net and Cenvat credit for services of rent-a-cab and tour operators to be allowed to promote tourism.
  • Service tax exempted on loading, unloading, storage, warehousing and transportation of cotton, whether ginned or baled.
  • Services provided by the Employees’ State Insurance Corporation for the period prior to 1st July 2012 exempted, from service tax.
  • Exemption available for specified micro insurance schemes expanded to cover all life micro-insurance schemes where the sum assured does not exceed Rs.50, 000 per life insured.
  • For safe disposal of medical and clinical wastes, services provided by common bio-medical waste treatment facilities exempted.
  • Tax proposals on the indirect taxes side are estimated to yield Rs. 7525 crore.
  • 24X7 customs clearance facility extended to 13 more airports in respect of all export goods and to 14 more sea ports in respect of specified import and export goods to facilitate cargo clearance.
  • ‘Indian Customs Single Window Project’ to facilitate trade, to be implemented.
  • The scheme of Advance Ruling in indirect taxes to be expanded to cover resident private limited companies. The scope of Settlement Commission to be enlarged to facilitate quick dispute resolution.
  • Customs and Central Excise Acts to be amended to expedite the process of disposal of appeals.
11Jul

Highlights of Budget 2014 – THE CURRENT ECONOMIC SITUATION AND THE CHALLENGES – Part 5

Several Initiatives Taken By The Government To Overcome The Challenges

FINANCIAL SECTOR

Capital Market

  • Ongoing process of consultations with all the stakeholders on the enactment of the Indian Financial Code and reports of the Financial Sector Legislative Reforms Commission (FSLRC) to be completed.
  • Government in close consultation with the RBI to put in place a modern monetary policy framework.
  • Following measures will be taken to energize Capital markets:
  • Introduction of uniform KYC norms and inter-usability of the KYC records across the entire financial sector.
  • Introduce one single operating demat account
  • Uniform tax treatment for pension fund and mutual fund linked retirement plan

BANKING AND INSURANCE SECTOR

Banking

  • Time bound programme as Financial Inclusion Mission to be launched on 15 August this year with focus on the weaker sections of the society.
  • Banks to be encouraged to extend long term loans to infrastructure sector with flexible structuring.
  • Banks to be permitted to raise long term funds for lending to infrastructure sector with minimum regulatory pre-emption such as CRR, SLR and Priority Sector Lending (PSL).
  • RBI to create a framework for licensing small banks and other differentiated banks.
  • Differentiated banks serving niche interests, local area banks, payment banks etc. Are contemplated to meet credit and remittance needs of small businesses, unorganized sector, low income households, farmers and migrant work force.
  • Six new Debt Recovery Tribunals to be set up.
  • For venture capital in the MSME sector, a Rs. 10,000 crore fund to act as a catalyst to attract private Capital by way of providing equity , quasi equity, soft loans and other risk capital for start-up companies with suitable tax incentives to participating private funds to be established.

Insurance Sector

  • The pending insurance laws (amendment) Bill to be immediately brought for consideration of the Parliament.
  • The regulatory gap under the Prize Chits and Money Circulation Scheme (Banking) Act, 1978 will be bridged.

Small Savings

  • Kissan Vikas Patra (KVP) to be reintroduced.
  • A special small savings instrument to cater to the requirements of educating and marriage of the Girl Child to be introduced.
  • A National Savings Certificate with insurance cover to provide additional benefits for the small saver.
  • In the PPF Scheme, annual ceiling will be enhanced to Rs. 1.5 lakh p.a. from Rs. 1 lakh at present.

DEFENCE & INTERNAL SECURITY

  • A further sum of Rs. 1000 crore to meet requirement for “One Rank One Pension”.
  • Capital outlay for Defence increased by Rs. 5000 crore including a sum of Rs. 1000 crore for accelerating the development of the Railway system in the border areas.
  • Urgent steps would also be taken to streamline the procurement process to make it speedy and more efficient.
  • Rs. 100 crore is provided for construction of a war memorial in the Princes Park, which will be supplemented by a War Museum. I am allocating a sum of Rs.100 crore for this purpose.
  • Rs. 100 crore is provided to set up a Technology Development Fund for Defence.


Internal Security

  • Rs. 3000 crore is provided in the current financial year for modernization of state police forces.
  • Adequate allocation for Additional Central Assistance for Left Wing Extremist Affected districts..
  • Rs. 2250 crore provided to strengthen and modernize border infrastructure.
  • Rs. 990 crore allocated for the socio economic development of the villages along the borders.
  • A sum of Rs. 150 crore ear-marked for the construction of Marine Police Station, Jetties and for the purchase of boats etc.
  • Rs. 50 crores provided for construction of National Police Memorial.

CULTURE & TOURISM

  • Rs. 200 crore provided to build the Statue of unity(National project).
  • Facility of Electronic Travel Authorization (e-Visa) to be introduced in phased manner at nine airports in India.
  • Countries to which the Electronic Travel authorisation facility would be extended would be identified in a phased manner.
  • Rs. 500 crore provided for developing 5 tourist circuits around specific themes.
  • Rs. 100 crore provided for National Mission on Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASAD).
  • Rs. 200 crore provided for National Heritage City Development and Augmentation Yojana (HRIDAY).
  • Rs. 100 crore provided for Archaeological sites preservation.
  • Sarnath-Gaya-Varanasi Buddhist circuit to be developed with world class tourist amenities to attract tourists from all over the world.

Water Resources and cleaning of Ganga

  • Rs. 100 crore provided for Detailed Project Reports for linking of rivers.
  • Rs. 2037 crores provided for Integrated Ganga Conservation Mission “NAMAMI GANGE”.
  • Rs. 100 crore provided for Ghat development and beautification at Kedarnath, Haridwar, Kanpur, Varanasi, Allahabad, Patna and Delhi.
  • NRI Fund for Ganga will be set up.


Science and Technology

  • Government to strengthen at least five institutions as Technical Research Centres.
  • Development of Biotech clusters in Faridabad and Bengaluru.
  • Nascent agri-biotech cluster in Mohali to be scaled up. In addition, two new clusters, in Pune and Kolkata to be established.
  • Global partnerships will be developed under India’s leadership to transform the Delhi component of the International Centre for Genetic Engineering and Biotechnology (ICGEB) into a world-leader in life sciences and biotechnology.
  • Several major space missions planned for 2014-15.

Sports and Youth Affairs

  • Rs. 200 crore provided for upgrading the indoor and outdoor sports stadiums in J&K Valley to international standards.
  • Rs. 100 crore provided for sports university in Manipur.
  • India to start an annual event to promote Unique sports traditions in the Himalayan region games.
  • Rs. 100 crore provided for the training of sports women and men for forthcoming Asian games.
  • A “Young Leaders Programme” with an initial allocation of Rs. 100 crore to be set up.

North Eastern States

  • Rs. 100 crore provided for development of organic farming in North Eastern States.
  • Rs. 1000 crore provided for development of rail connectivity in the North Eastern Region.
  • To provide a strong platform to rich cultural and linguistic identity of the North-East, a new 24×7 channel called “Arun Prabha” will be launched.

Andhra Pradesh and Telangana

  • Government committed to addressing the issues relating to development of Andhra Pradesh and Telangana in the AP Re-organization Act, 2014. Provision made by various Ministries/ Departments to fulfill the obligation of Union Government.

NCT of Delhi

  • Rs. 200 crore for power reforms and Rs. 500 crore for water reforms to make Delhi a truly World Class City.
  • Rs. 50 crore provided to solve the long term water supply issues to the capital region. Construction of long pending Renuka Dam to be taken up on priority.

Andaman and Nicobar Island and Puducherry

  • Rs. 150 crore provided to tide over communication related problems of the Island.
  • Rs. 188 crore to Puducherry for meeting commitments for Disaster preparedness.


Displaced Kashmiri Migrants

  • Rs. 500 crore provided to support displaced Kashmiri migrants for rebuilding their lives.

Himalayan Studies

  • Rs. 100 crore provided to set up a National Centre for Himalayan Studies in Uttarakhand.
11Jul

Highlights of Budget 2014 – THE CURRENT ECONOMIC SITUATION AND THE CHALLENGES – Part 4

Several Initiatives Taken By The Government To Overcome The Challenges

INDUSTRIAL AND INFRASTRUCTURAL

INDUSTRY

  • Central Government Departments and Ministries to integrate their services with the e-Biz -a single window IT platform- for services on priority by 31 December this year.
  • Rs. 100 crore provided for setting up a National Industrial Corridor Authority.
  • Amritsar Kolkata Industrial master planning to be completed expeditiously.
  • Master planning of 3 new smart cities in the Chennai-Bengaluru Industrial Corridor region, viz., Ponneri in Tamil Nadu, Krishnapatnam in Andhra Pradesh and Tumkur in Karnataka to be completed.
  • Perspective plan for the Bengaluru Mumbai Economic corridor (BMEC) and Vizag-Chennai corridor to be completed with the provision for 20 new industrial clusters.
  • Development of industrial corridors with emphasis on Smart Cities linked to transport connectivity to spur growth in manufacturing and urbanization will be accelerated.
  • Proposed to establish an Export promotion Mission to bring all stakeholders under one umbrella.
  • Apprenticeship Act to be suitably amended to make it more responsive to industry and youth.

Micro Small and Medium Enterprises (MSME) Sector

  • Skill India to be launched to skill the youth with an emphasis on employability and entrepreneur skills.
  • Committee to examine the financial architecture for MSME Sector, remove bottlenecks and create new rules and structures to be set up and give concrete suggestions in three months.
  • Fund of Funds with a corpus of Rs. 10,000 crore for providing equity through venture capital funds, quasi equity, soft loans and other risk capital specially to encourage new startups by youth to be set up.
  • Corpus of Rs. 200 crore to be set up to establish Technology Centre Network .
  • Definition of MSME to be reviewed to provide for a higher capital ceiling.
  • Programme to facilitate forward and backward linkages with multiple value chain of manufacturing and service delivery to be put in place.
  • Entrepreneur friendly legal bankruptcy framework will be developed for SMEs to enable easy exit.
  • A nationwide “District level Incubation and Accelerator Programme” to be taken up for incubation of new ideas and necessary support for accelerating entrepreneurship.


Textiles

  • Rs. 50 crore is provided to set up a Trade Facilitation Centre and a Crafts Museum to develop and promote handloom products and carry forward the rich tradition of handlooms of Varanasi.
  • Sum of Rs. 500 crore for developing a Textile mega-cluster at Varanasi and six more at Bareilly, Lucknow, Surat, Kutch, Bhagalpur and Mysore.
  • Rs. 20 crore to set up a Hastkala Academy for the preservation, revival, and documentation of the handloom/handicraft sector in PPP mode in Delhi.
  • Rs. 50 crore is provided to start a Pashmina Promotion Programme (P-3) and development of other crafts of Jammu & Kashmir.

INFRASTRUCTURE

  • An institution to provide support to mainstreaming PPPPs called 4PIndia to be set up with a corpus of Rs. 500 crores.

Shipping

  • Rs. 11635 crore will be allocated for the development of Outer Harbour Project in Tuticorin for phase I.
  • SEZs will be developed in Kandla and JNPT.
  • Comprehensive policy to be announced to promote Indian ship building industry.

Inland Navigation

  • Project on Ganges called “ Jal Marg Vikas’ to be developed between Allahabad and Haldia.

New Airports

  • Scheme for development of new airports in Tier I and Tier II Cities to be launched.

Roads sector

  • Sector needs huge amount of investment along with debottlenecking from maze of clearances.
  • An investment of an amount of Rs. 37,880 crores in NHAI and State Roads is proposed which includes Rs. 3000 crores for the North East.
  • Target of NH construction of 8500 km will be achieved in current financial year.
  • Work on select expressways in parallel to the development of the Industrial Corridors will be initiated. For project preparation NHAI shall set aside a sum of Rs. 500 crore.

Energy

  • Rs. 100 crore is allocated for a new scheme “Ultra-Modern Super Critical Coal Based Thermal Power Technology.”
  • Comprehensive measures for enhancing domestic coal production are being put in place.
  • Adequate quantity of coal will be provided to power plants which are already commissioned or would be commissioned by March 2015.
  • An exercise to rationalize coal linkages to optimize transport of coal and reduce cost of power is underway.


New & Renewable Energy

  • Rs. 500 crores provided for Ultra Mega Solar Power Projects in Rajasthan, Gujarat, Tamil Nadu, Andhra Pradesh and Laddakh.
  • Rs. 400 crores provided for a scheme for solar power driven agricultural pump sets and water pumping stations.
  • Rs. 100 crore provided for the development of 1 MW Solar Parks on the banks of canals.
  • A Green Energy Corridor Project is being implemented to facilitate evacuation of renewable energy across the country.

Petroleum & Natural Gas

  • Production and exploitation of Coal Bed Methane reserves will be accelerated.
  • Possibility of using modern technology to revive old or closed wells to be explored.
  • Usage of PNG to be rapidly scaled up in a Mission mode.
  • Proposal to develop pipelines using appropriate PPP models.


Mining

  • Changes, if necessary, in the MMDR Act, 1957 to be introduced to encourage investment in mining sector and promote sustainable mining practices.
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