Bangalore metro project, funds for urban infrastructure hailed

Our Bureau

Timely step

Constitution of

"Committee of Agricultural Experts".

Rebate on

input tax on capital goods in one month.

Scheme of

acceptance of returns filed by dealers under sales tax and entry tax.

Reduction in

stamp duty from 8 per cent to 7.5 per cent.

Bangalore, March 21

The Confederation of Indian Industry (Karnataka) has expressed satisfaction over the containment of fiscal deficit within the target of three per cent set under the Karnataka Fiscal Responsibility Act.

In its reaction to the maiden Budget presented by the new coalition Government, the CII said it welcomed the renewed thrust on infrastructure particularly the priority given to Bangalore metro rail project and allocation of a higher amount for urban infrastructure services; and taking up of "B-TRAC 2010" project for easing the traffic congestion in the city.

The CII said the proposed constitution of "Committee of Agricultural Experts" to modernise the State's agriculture was a timely step and appreciated among others the rebate on input tax on capital goods in one month instead of 12 months, scheme of acceptance of returns filed by dealers under the sales tax and entry tax with a view to expediting assessment and reduction in stamp duty from 8 per cent to 7.5 per cent.

These measures, the release stated, along with a Rs 5-crore scheme for sericulture development and a new Pancha Sutra programme for accelerated agricultural growth with the major components being conservation of natural resources, improvement of post harvesting process and timely availability of credit to farmers, would go a long way to facilitate the State Government's target of achieving 8-10 per cent growth.

BCCI unhappy

The Bangalore Chamber of Commerce and Industry (BCIC), however, expressed its disappointment over the Budget not making any reference to power reforms and infrastructure development of Tier II cities.

The BCIC President, Mr Anant Koppar, said the allocation of Rs 212.37 crore for the development of Bangalore, Mangalore and Hubli airports along with other cities and the Bangalore metro rail getting a priority would help attract investments.

(This article was published in the Business Line print edition dated March 22, 2006)
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