The Hindu Business Line : Tuesday, July 07, 2009

INDUSTRY & ECONOMY

BUDGET: Pranab borrows big to fund handouts
New Delhi, July 6 The 2009-10 Union Budget is likely to leave more money in the hands of the aam aadmi through a massive step-up in social sector outlays and a marginal tinkering of personal income-tax ...

BUDGET: Short-term support at 14,000 for Sensex
There was a sea of red splashed across trading screens on Monday as the Sensex and Nifty nose-dived 5.8 per cent. Market participants went on a selling spree, irked at the continuation of STT, increase in MAT and lack of policy direction in ...

INCOME TAX: Tax relief to women, senior citizens cost exchequer over Rs 3,000 cr
Chennai, July 6 The Government pegs the tax concession granted in 2008-09, to senior citizens and women at Rs 3,184 crore, Budget documents reveal. However, the quantum of revenue foregone in 2008-09 is lower than its own estimate for 2007-08 ...

BUDGET: Oil India, NHPC initial public offer soon, says Finance Secy
Four more companies will be identified for disinvestment. New Delhi, July 6 State-owned Oil India Ltd and National Hydroelectric Power Corporation (NHPC) will tap the capital market with their initial public offering (IPOs) in August/September ...

INFRASTRUCTURE: Congress borrows, spends, wins - at our expense
The Budget for 2009-10 has ensured that almost everyone - people as well as companies - will have to pay less tax now. True, the reduction in the tax burden is not very much. But it is there. This is the good news. Also, a dog with a bone in ...

INFRASTRUCTURE: Takeout financing yet to take-off
IIFC to evolve scheme to enhance infrastructure lending. Bangalore, July 6 In a bid to kick-start infrastructure lending, the Union Finance Minister, Mr Pranab Mukherjee, has revisited the idea of takeout financing in the Union ...

TAXATION: Railway falls in service tax net; details on abatement, exemption awaited
Road transporters get 75%; abatement of 70% for container trains. New Delhi, July 6 Rail transportation may become more expensive for some of its freight users with the Finance Minister, Mr Pranab Mukherjee, suggesting levy of service tax on the ...

BUDGET: Spend and deliver
Listening to the Finance Minister, Mr Pranab Mukherjee, one could be forgiven for thinking how familiar the Union Budget’s objectives sounded; last week, Ms Mamata Banerjee’s Railway Budget speech too had been peppered with references ...

PETROLEUM: 7-year tax holiday extended to gas producers
Expert group to advise on petro products pricing. New Delhi, July 6 The Finance Minister, Mr Pranab Mukherjee, has offered some respite to hydrocarbon companies involved in exploration and pipeline networks but left questions of oil retailers ...

BUDGET: Infrastructure — Road to rapid growth
If there is any sector that can boast of walking away with most goodies from the Budget 2009-10, it is infrastructure. Be it the allocation for highways or irrigation programmes, rural development or accelerated power reforms, the ...

BUDGET: Consumer Cos — Rural stimulus
Investors may once again have to go back to defensive consumer companies that have a substantial stake in rural India. That seems to be the key implication from Budget 2009’s continued focus on rural spending and agricultural credit, ...

BUDGET: IT — Positive clicks
Mid- and small-sized IT companies can breathe easier with the extension of the sunset clause for tax benefits under the software technology parks scheme by another ...

BUDGET TEXT: Income-tax exemption limit raised by Rs 10,000 for individuals
Madam Speaker, I shall now present my tax proposals.As the House is aware, the thrust of reforms over the last few years, including the previous term of this Government, has been to improve the efficiency and equity of our tax system. This ...

BUDGET TEXT: Gold, silver prices set to rise; life-saving drugs, LCD TVs turn cheaper
Madam Speaker, I turn to my main proposals on indirect taxes.I will first take up ...

TAXATION: O tempora, O mores!
New Delhi, July 6 It is not often that a Finance Minister reverses a tax imposed by his predecessor in the first year. But that is exactly what Mr Pranab Mukherjee has done. The casualty is the Commodity Transactions Tax ...

BUDGET TEXT: An overview of the economy
Madam Speaker, at the time of the presentation of the Interim Budget, I had given a detailed analysis of the economic situation. Without repeating myself, I would like to highlight that the development course charted by the UPA Government in ...

BUDGET: Central Plan outlay to go up 34%
Agri, allied sectors, rural development schemes major beneficiaries. New Delhi, July 6 The 2009-10 Union Budget proposes a 34 per cent increase in the Central Plan outlay to Rs 3.25 lakh crore, against Rs 2.43 lakh crore (budgeted) ...

BUDGET TEXT: The challenges before the Government
Just 140 days back, I had the privilege to present the Interim Budget for 2009-10. It is a rare honour that I have been called upon to present the regular Budget after the new Government ...

CONSUMER ELECTRONICS: Duty cut to make LCD TVs cheaper
The Finance Minister may not have tinkered around with the duty rates much, either excise or import duties on ...

BUDGET TEXT: Lending a hand for farmers
I now turn to agricultural development.Agriculture has been the mainstay of our economy with 60 per cent of our population deriving their sustenance from ...

ECONOMIC SURVEY: Economic Survey’s misled optimism spoils party
Market may regain as Govt focused on ‘aam aadmi’. There was little in the General Budget that the Economic Survey of last Thursday led them to expect, said disappointed ...

BUDGET: MNCs may welcome move to amend ‘transfer pricing’ law
The two proposals in the Finance Bill that seek to amend the law on ‘transfer pricing’ is certain to be welcomed by taxpayers, especially the ...

BUDGET: Thanks for making me feel richer!
You really know how to make me happy. You have not only given me an exemption of Rs 10,000 more, you have given me a way to spend it. Every single jewellery designer a woman dreams about has set up shop in my area and I am going to visit ...

BUDGET: There’s lots to please
Why there is reason to laud this Budget. The stock market punters would have me believe that it is a very negative Budget, and while I do not understand the implications on different industries, I think I am quite pleased about what I have ...

BUDGET: Nothing to bind
With no announcement of relief on duties, the cement industry now has to take respite only from the promise of higher infrastructure spending resulting in a possible increase in despatches. The industry’s estimated demand growth for ...

BUDGET TEXT: IIFCL to evolve ‘takeout financing’ scheme for infrastructure sector
To stimulate public investment in infrastructure, we had set up India Infrastructure Finance Company Ltd (IIFCL) as a special purpose vehicle for providing long-term financial assistance to infrastructure projects. We will ensure that IIFCL ...

BUDGET: Social sector schemes get a big boost
New Delhi, July 6 The social sector is a clear winner in Budget 2009-10, with an enhanced allocation on five fronts for the aam aadmi — employment, food security, education, health and ...

INCOME TAX: Leaving them peeved
Little to cheer for the homemaker and the working woman. Homemakers and working women alike are bound to be peeved with Budget 2009. Nothing substantial has been done to put more money in their ...

PETROLEUM: Pipeline to profits
It was a good Budget for the oil and gas sector but it would have been even better if only the Finance Minister had also unveiled a clear plan to deregulate petroleum product pricing. Even so, the industry has been gifted two major ...

INCOME TAX: FBT abolition: Minimal impact
The abolition of Fringe Benefit Tax (FBT) may remove a major procedural irritant but it may not have a material impact on the profits of the large listed companies. Introduced in 2005, FBT’s share has been less than 3 per cent of ...

TAXATION: Investing for a tax break
The Finance Minister must be congratulated for presenting the first Rs 10-lakh crore budget in the country’s history — a sure sign that India is a power to be reckoned ...

TAXATION: Put on the MAT
The Budget for 2009-10 has not been too kind to companies enjoying tax benefits and taking shelter under Chapter XIIB of the Income Tax Act commonly known as the Minimum Alternate Tax (MAT). The Budget has proposed an increase in the MAT ...

BUDGET TEXT: Schemes to restore export growth
Our exporters by virtue of their close links to the external sector have borne the brunt of the global economic crisis. It is, therefore, appropriate that we continue to provide all possible assistance to our exporters to help them overcome ...

INCOME TAX: Wealth tax limits eased
BL Research Bureau The Finance Minister has proposed a hike in the exemption limit for wealth tax calculation from Rs 15 lakh to Rs 30 lakh in the ...

TAXATION: Tax-GDP ratio to fall below 11% this fiscal
New Delhi, July 6 The economic slowdown has severely dented the Centre’s tax collections, with indirect taxes bearing ...

BUDGET: More money in consumers’ hands could help FMCGs
New Delhi/Mumbai, July 6 While there is nothing specific in this Budget for the fast moving consumer goods (FMCG) sector, the industry reaction is generally positive. Increased spending in the rural sector is expected to increase the ...

BUDGET: Etc...
...

BUDGET: Definitions get well-defined
Finance Bill, 2009 is notable for the novelty introduced in the Definition clause of the Income-Tax Act, 1961. Taxability of a receipt or allowance is determined on the basis of meaning given to the word in the Act ...

TEXTILES: Textile industry feels disappointed
Ahmedabad, July 6 The textile industry received this Budget with mixed feelings. Mr Sunil Khandelwal, Chief Financial Officer, Alok Industries Ltd, summed it up “It is positive that they have not introduced ...

REAL ESTATE & CONSTRUCTION: Realtors unhappy
The Budget is not inspirational, at least for the real estate sector which was mainly looking up for some Governmental support for a speedier revival, says a section of the ...

RURAL DEVELOPMENT: Rs 2,000 cr for rural housing fund under NHB
Mumbai, July 6 Rural housing sector could get a big boost as the Budget has allocated Rs 2, 000 crore to the National Housing Bank’s Fund dedicated to the ...

BUDGET: Positives, negatives
As Budget 2009 was read out by the Finance Minister, the stock market plummeted. While various industries have differing perceptions on the impact of the Budget, the provisions of income-tax law have been tinkered with. What follows is ...

CEMENT: Tax rationalisation issue not addressed, says cement industry
Chennai, July 6 The cement industry has welcomed the Budget proposal to increase investments in infrastructure which would drive demand for the commodity, but is disappointed over no specific measures to address the industry’s ...

BUDGET TEXT: Plans, estimates for Budget 2009-10
Madam Speaker, now I turn to the Budget Estimates (BE) for 2009-10.The BE 2009-10 provide for a total expenditure of Rs 10,20,838 crore consisting of Rs 6,95,689 crore towards Non Plan and Rs 3,25,149 crore towards Plan ...

TAXATION: Sigh of relief on transfer pricing
New Delhi, July 6 The Government’s plans to create an alternative dispute resolution mechanism for resolving transfer pricing issues as well as formulation of ‘Safe Harbour’ rules are expected to come as a relief ...

PHARMACEUTICALS: Life-saving drugs to get cheaper
Customs duty cut on 10 specific medicines. New Delhi, July 6 Heart patients and those with diseases such as breast cancer, hepatitis-B and rheumatic arthritis will get cheaper drugs as the Government has announced a reduction on Customs duty on ...

BUDGET: Slant in favour of ‘aam aadmi’: Kerala industry
The trade and industry in the State have welcomed the Union Budget saying that the Government’s social commitment as well as its slant in favour of ‘aam aadmi” is amply evident in the Budget ...

CARS: Budget impact: Auto makers consider price cut
New Delhi, July 6 Auto makers are considering a price cut of Rs 5,000 on vehicles above 2000 cc in a swift response to the Budget announcement of lowering special duties on these ...

BUDGET: Knee-jerk reaction is negative but long-term growth on sound footing
Budget accords priority to infrastructure: Edelweiss. Growth, especially inclusive growth, continued to top the Government’s agenda in the ...

EXCISE AND CUSTOMS: Gold, silver rise on proposal to double Customs duty
It could activate the smuggling route, says WGC official. Bangalore/Kolkata, July 6 Despite an easy trend in the global market, gold and silver prices firmed up in the domestic market following the Budget proposal to double the ...

BUDGET: Key is in the political will: Vellayan
Chennai, July 6 Mr A. Vellayan, Chairman of E.I.D. Parry, has said the key to moving towards a nutrient-based subsidy regime from the present product-based subsidy for fertlisers is in the political will and the commitment needed to ...

BUDGET: An ‘Aam’ Budget for the ‘Aam Aadmi’
With steps like a marginal increase in Income-Tax exemptions, extension of the debt waiver scheme, greater rural employment opportunities and cheaper credit for farmers who have paid their dues in time, the Finance Minister has clearly ...

PERSONAL PRODUCTS: Now for more of soap and atta
An impetus for items of daily consumption. The Budget promises to bring significant benefits to the common man, while farmers have also been major beneficiaries. The exemption limit for Income Tax is welcome and worth appreciating. The Budget ...

BUDGET: Silence on disinvestment could be heard aloud
New Delhi, July 6 Belying expectations that the Government would present a roadmap for revitalising the disinvestment programme, the Finance Minister, Mr Pranab Mukherjee, today came out only with a few soft statements of intent on ...

PETROLEUM: Relief likely to prove spoilsport for some producers
Kolkata/Ahmedabad. July 6 The Budget announcement to retrospectively treat all blocks licenced under a single contract as a single undertaking for provision of the tax holiday on natural gas production, may prove to be a spoilsport for a host ...

BUDGET: Boost to sentiments likely as commodity transaction tax goes
Mumbai, July 6 The quiet burial of yet-to-be-implemented Commodity Transaction Tax (CTT) has boosted the confidence of the commodity futures market, which was plagued by frequent bans on agriculture products. The Government recently ...

INDUSTRY ASSOCIATIONS: Govt must focus on containing fiscal deficit, says Assocham
Mumbai, July 6 The Government should focus on preparing a roadmap for containing the fiscal deficit over five years rather than improving tax collection by withdrawing the incentives provided as part of the stimulus package, Mr Sajjan ...

POWER: Govt hikes allocation for power reform scheme by 160%
New Delhi, July 6 The power reforms programme got a booster dose in the Budget, with the Finance Minister hiking the allocation for the Centre’s flagship distribution reforms scheme by 160 per cent over the previous ...

BUDGET TEXT: Flagship schemes keeping ‘aam aadmi’ in focus
Madam Speaker, the UPA Government has gone for a paradigm shift for making the development process more inclusive. It involves creating entitlements backed by legal guarantee to provide basic amenities and opportunities for livelihood to ...

BUDGET TEXT: Plans to raise threshold for non-promoter public shareholding for all listed cos
The financial sector is the life blood of any economy. Our Government’s approach to the banking and financial sector has been to ensure robust oversight and regulation, while expanding financial access and deepening ...

INCOME TAX: Cut in I-T may help mutual funds
Mumbai, June 6 Though the Budget did not contain anything that directly pertains to mutual funds, the increase in disposable income in the hands of investors is likely to pave the way for increased investments in mutual funds in the long ...

READYMADE GARMENTS: Exporters say ‘left high and dry’
Bangalore, July 6 Budget 2009 has left an expectant textiles and apparel exports industry high and dry. The industry, which was anticipating several sops after the Textile Minister’s assuring words, is disappointed that no ...

BUDGET: Market may seek lower levels
Coimbatore, July 6 The stock markets reacted negatively to the Union Budget today because the Finance Minister’s speech did not meet its expectations on certain key issues and even if there is a bounce back from today’s lows, ...

BUDGET: Preference to economic growth
The Finance Minister has adopted a pragmatic approach while giving preference to economic growth over fiscal discipline in the FY10 ...

CARS: Excise cut on cars above 2000 cc
New Delhi, July 6 The Finance Minister, Mr Pranab Mukherjee, has announced the reduction of excise duty applicable on large cars and utility vehicles with an engine capacity of 2000 cc and above to Rs 15,000 a vehicle from Rs ...

RADIO/TV: 5% Customs duty on set-top box disappoints multi service operators
New Delhi, July 6 The Budget proposal of imposing a five per cent customs duty on set-top boxes (STBs) has disappointed both the addressable cable and direct-to-home ...

BUDGET: Sops to gas pipelines to benefit GAIL
The Government’s decision to extend investment-linked tax incentives to oil and gas pipelines would substantially benefit GAIL (India) Ltd. IndianOil and GSPL will also figure on the gainers ...

BUDGET: A balanced Budget
I rate this Budget as a balanced one, which is high on vision and provides the roadmap forGovernment priority in the second term. The Finance Minister’s commitment to restore the growth rate to 9 per cent, in my view, is the ...

AUTOMOBILES: Auto sector relieved with no rollback in duties
Mumbai, July 6 At one level, the automobile sector has little to complain about the Budget because excise duties have remained untouched when there was some apprehension that there would be a ...

BUDGET: Lift to public holdings
The Finance Minister’s Budget promise to raise the threshold level of public holdings in listed companies is of immense significance to both investors and markets ...

BUDGET: A damp squib, say Opposition parties
New Delhi, July 6 Opposition political parties termed the Union Budget as a damp squib and lacklustre on the grounds that the proposals were inadequate in meeting the challenges of the economic recession, growing job losses and ...

BUDGET: All ears
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TEXTILES: Allocation for textile fund scheme hiked
New Delhi, July 6 The Budget 2009-10 proposals provided something to cheer for the beleaguered textile ...

BUDGET TEXT: Kautilya inspires…
The short-term fiscal stimulus has to be balanced against long-term prudence and fiscal sustainability objectives. To quote Kautilya, “In the interest of the prosperity of the country, a King shall be diligent in foreseeing the possibility ...

GEMS & JEWELLERY: ‘Duty hike on gold to push up jewellery prices’
The Kerala Gold Merchants Association has reacted on the Union Budget 2009-10 saying that raising import duty on gold would shoot up the prices of jewellery in the ...

BUDGET TEXT: Expert group on petroleum products pricing
Madam Speaker, Honourable Members are aware that global prices of oil and petroleum products had shot up to unprecedented levels in 2008-09. Most oil importing countries, including our neighbours, adjusted their domestic prices to reflect ...

BUDGET TEXT: Fertiliser subsidy
In the context of the nation’s food security, the declining response of agricultural productivity to increased fertiliser usage in the country is a matter of concern. To ensure balanced application of fertilisers, the Government intends ...

PETROLEUM: AP units fear flight of gas from K-G basin
The Finance Minister, Mr Pranab Mukherjee’s announcement of a blueprint for the long distance gas pipeline highways leading to a national gas grid in his Union Budget on Monday has triggered fears across industries in Andhra Pradesh ...

BUDGET: Budget will stimulate growth: Citi
Mumbai/Chennai, July 6 Foreign institutional investors (FIIs) had a mixed reaction to the Budget announcements – ranging from disappointments to saying measures would bear fruit in three to five ...

INCOME TAX: FBT is now employees’ burden
Bangalore, July 6 The reintroduction of the perquisite tax could largely neutralise the impact of the scrapping of the fringe benefit ...

PHARMACEUTICALS: No cheer for pharma, healthcare
Mumbai/Bangalore, July 6 There was practically nothing to cheer for the pharmaceutical industry in Budget . Novartis India’s head, Mr Ranjit Shahani, observed that the Budget virtually side-stepped the pharma industry ...

BUDGET TEXT: Focus on improving delivery of public services
As substantial resources, both public and private, are mobilised to fuel the growth of the economy and make it more inclusive in character, efficiency of delivery must become the focus of Government programmes. The enactment of the Right ...

BUDGET: Budget did not lay out a roadmap for reforms: HSBC
Mumbai/Chennai, July 6 FIIs felt market correction was due to strectched valuations and high hopes. “The market was due for a 10-15 per cent correction due to stretched valuations and unrealistic expectations on reforms in the Budget ...

DISINVESTMENT: ITI gets Rs 2,820 cr ahead of sell-off
New Delhi, July 6 The Government has allocated Rs 2,820 crore to the loss-making manufacturer of telecom equipment, ITI. in a move aimed at cleaning up the PSU’s balance ...

BUDGET: No stimulus for tourism
“The hospitality sector is disappointed with the interim budget ...

BUDGET: Provides roadmap for growth
“Overall, it is a good budget. It provides a roadmap for growth. It aims to put more money into the hands of people in rural and urban India. It ensures more funds for infrastructure development and creation of more rural employment. ...

INDUSTRY ASSOCIATIONS: SIMA hails more funds for tech upgrade scheme
The Southern India Mills Association (SIMA) Chairman, Dr K.V. Srinivasan, hailed the increased allocation of Rs 3,140 crore towards the TUF scheme against Rs 1,090 crore allocated last ...

BUDGET: Fiscal arithmetic realistic
Ms Roopa Kudva, Managing Director and Chief Executive Officer, Crisil Ltd, says: “The fiscal arithmetic of the Budget is realistic with revenue and expenditure estimates reflecting the prevailing economic ...

AUTOMOBILES: Highways thrust to benefit auto cos
Increased expenditure by the National Highway Authority of India, higher outlay by 59 per cent on Prime Minister’s Gram Sadak Yojana and expansion of allocation to Jawahar Lal Nehru Urban Renewal Mission will have a positive impact on ...

BUDGET: Disappointed
We were looking forward to some much deserved relief for the aviation sector from this year’s Union Budget. We ...

GEMS & JEWELLERY: No cause to waive excise duty on branded jewellery
Mumbai, July 6 If the Finance Minister did a good job in hiking Customs duty on gold imports, he deserves no kudos for withdrawing excise duty on ...

FERTILISERS: Stunted yields
Not taking up the Economic Survey’s suggestion of “decontrolling” the fertiliser industry, all that the Budget says is that it will be migrated to a “nutrient” based pricing regime. Thus far, the prices of ...

POWER: Considerable spike
Power generation, transmission and distribution companies may benefit from extension of section 80-IA clause by one more year to 2011. However, the benefit may be partly offset by the minimum alternate tax rate hike to 15 per cent effective ...

PSU: Disinvestment blues
Disinvestment was the buzz word, post election of a stable government. The FM’s Budget speech stressed on the importance of ‘public holding’ in the Central Public Sector Enterprises (CPSEs) without altering the nature of ...

BUDGET: Technology overdrive
Educomp Solutions, NIIT and Everonn Systems may be the key beneficiaries of the Budget proposal to provide greater allocation to the ‘Mission in Education through IT’ scheme. All the three companies, especially Educomp and NIIT, ...

STEEL: Non-malleable
The steel sector will liken Pranab Muherjee’s 2009 Budget to Chares Dicken’s Ebenezer Scrooge before the haunting, he literally gave them nothing. The Railway Budget, with no changes in freight charges and 18,000 units wagon orders, ...

INDUSTRY ASSOCIATIONS: Taking note
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EVENTS: With rapt attention
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