Business Daily from THE HINDU group of publications
Sunday, Jul 09, 2006
Business Daily from THE HINDU group of publications Sunday, Jul 09, 2006 |
|
|
|
|
|
|
|
Corporate
-
Outlook Industry & Economy - Petroleum Logistics - Infrastructure Petro investment regions to be infrastructure-driven Richa Mishra
Panel proposals The Central Government would constitute an inter-ministerial empowered committee, which would approve and notify PCPIRs. It would also constitute a facilitation board for each PCPIR and monitor its overall functioning. The State Governments would constitute a management board, whose basic mandate would include acquisition and provisioning of land for the development of PCPIR.
New Delhi , July 8 The Government is likely to restrict tax incentives for the proposed petroleum, chemicals and petrochemicals investment region (PCPIR) to omnibus benefit of Section 80 (IA) of the Income-Tax Act. The Act gives exemption of 10 years on profits earned from infrastructure projects (except gas pipelines), and the benefits available for SEZs if they are approved by the Commerce Ministry. This proposal has come from an inter-ministerial committee chaired by the Finance Secretary, Mr Adarsh Kishore, which was tasked to look into the issues pertaining to financial implications for PCPIRs and also the roles of the Centre and State Governments, tariffs, infrastructure financing, and identifying linkages with schemes for promoting public-private partnerships in infrastructure. It has been proposed that the Central Government would constitute an inter-ministerial empowered committee, which would approve and notify PCPIRs. It would also constitute a facilitation board for each PCPIR and monitor its overall functioning. The board will be authorised to be a single-window clearance body and would operate at the State and PCPIR level. The State Governments would constitute a management board, under their Industrial Development Act. The basic mandate of this board, which would be a special purpose vehicle, would include acquisition and provisioning of land for the development of PCPIR. It would also enter into agreements with the developers and enforce performance guarantees. The Central Government estimates on the approximate cost on augmentation of infrastructure vary from Rs 700 crore to Rs 4,000 crore and State Government estimates from Rs 1,300 crore to Rs 9,000 crore.
Chosen sites
The sites selected for PCPIRs include Dahej in Gujarat, Mangalore (Karnataka), Paradip (Orissa), Haldia (West Bengal) and Visakhapatnam (Andhra Pradesh). While the Central Government will be responsible for developing external infrastructure such as airports, ports, railway and road links through budgetary resources, the State Governments will provide open access connection with the grid minus the surcharges, bulk water, links with sewerage/effluent dumps and development of State Highways. A PCPIR would be a specifically delineated investment region with an area of around 250 sq km - including SEZs, free trade and warehousing zones, EOUs , and other existing industrial clusters. It would be a combination of production units, public utilities, logistics, environmental protection mechanisms, and residential and administrative areas.
More Stories on : Outlook | Petroleum | Infrastructure | Taxation
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|