Mr. Chandak, MD, KEC International expectations from the Budget

Dear Sir,

 

As discussed, Mr.R.D. Chandak’s, M.D. KEC International, expectations from the budget are as below:

 

 

1.      ACHIEVEMENT OF XIth PLAN TARGETS:

o       The ministry of Finance should work in closer co-ordination with the Ministry of Power to set an achievable and realistic target of capacity addition which should be backed up with adequate allocation of funds. It is therefore important that the Government speeds up and gives confidence that the 11^th & 12^th Plan targets will be met and the under-performance of 10th Plan would not be repeated.     

2.      Continuation of Reforms:

o       Power Sector Reforms be continued and to expedite implementation, to attract the much required investments in this critical sector.

o       With the Govt.’s target of improving the generating capacity; Reduction in T&D losses and Electricity for all at affordable cost, the Govt. should consider more investments and release of adequate funds in growth oriented schemes like RAPDRP along with lowering of Project costs by lowering the extra burden of taxes & duties.

o       Labour and Administrative reforms have become critically important, given India’s poor record in productivity.

 

3.      INFRASTRUCTRURE STATUS FOR POWER SECTOR FOR UNDER INCOME TAX & SERVICE TAX

o       Power generation, transmission and distribution business should be added to the list of infrastructure projects appearing under section 80 IA of IT Act & Service Tax so that similar benefits provided to roads, highway projects, water supply projects, ports, airports etc. are also available to the power sector

o       The deduction facility under section 80 IA should at least be extended for such projects commissioned till 31st March 2012, keeping in mind the Government’s Programme “Electricity for All at affordable cost by year 2012”.

 

4.      TAX SIMPLIFICATION

o       To maintain competitiveness of the Indian industry, The Central Govt. in co-ordination with the state Govt. rationalize / evolve policies helping reduce the number of taxes, simplify procedures, reduce transaction cost, financing cost, etc. Alternately, these taxes should be made VATable.

 

5.      Deemed Exports AT Par with Physical Exports:

o       The supplies under deemed exports, are not treated at par with physical exports with respect to duty drawback, direct tax and excise duty. Deemed Exports should be treated at par with Physical exports thereby providing a level playing field with regard to the payment of terminal Excise Duty and other benefits available to physical exports to help promote the domestic industry and further increase exports.

 

Request you to please use the same for the Budget Wish List column.

 

Also attached is photograph

 

Regards,

Priti Dalal

Assistant Manager - Group Corporate Communications

RPG Enterprises

Landline: 022 24930621

Handphone: +91 9820860627

e-mail: pritidalal@rpg.in  website: www.rpggroup.com