BUDGET IMPACT

ANALYSIS
ON
INFRASTRUCTURE
INFRASTRUCTURE AND INDUSTRY
 An allocation of Rs 2,14,000 Crore for infrastructure
sector.
 Capital investment in Fertilizer production as sub sector.
 Design of National Capacity Building programme.

 Target for cumulative disburment by India Infrastructure

Finance Company Limited (IIFCL) raised to Rs 250 bn by
March 31, 2012.
 Additional deduction of Rs 20,000 for investment in long-
term infrastructure bonds.
CONT……
 FII limit for investment in corporate bonds in
infrastructure is being raised by US $ 20 bn.
 Permit for FIIs to invest in unlisted bonds with a
minimum lock-in period of three years.
 Creation of special vehicles in the form of notified
infrastructure debt funds to attract foreign funds for
infrastructure financing.
 Levy of MAT on developers of SEZs and units operating
in SEZs.
 Reduction in tax on dividend received by an Indian
company from its foreign subsidiary.
 RMC to attract excise duty of 5%.
CONT…..

 Tax free bonds of Rs 30,000crore .

 Indian railways finance corporation Rs 10,000crore
 National highways authority of India Rs 10,000crore.
 HUDCO Rs 5000 crore
 ports Rs 5000crore.
ROADS AND RAILWAYS
 Allocation of Rs 103.40 bn for national highway
development programme.
 Full exemption from basic customs duty for bio-
asphalt and specified machinery for application
in the construction of national highways.
URBAN INFRASTRUCTURE
 Allocation under Jawaharlal Nehru national
urban renewal mission of Rs 125.20 bn for FY12.
 Allocation of Rs 15.60 bn for equity investments
for all Metro Rail Projects.
 Proposal for Delhi Metro Phase-III and the
Mumbai Metro Line III in FY12 allocation of
1351 crore.
RURAL INFRASTRUCTURE
 RIDF in an important instrument for routing
bank funds.
 Raise of corpus of RIDF XVII To Rs 18000.
 Allocation would be dedicated to create ware
housing facilities.
POSITIVE IMPACT ON
INFRASTRUCTURE
 The plan expenditure for infrastructure sector to constitute around
48.50% of total plan outlay for FY12 – a growth of 23.03%
 Over 11% rise in budgetary allocation on road transport &
highways.
 FIIs would now be permitted to invest in unlisted bonds with a
lock-in of three years.
 A rise in the cap of FII investment in corporate bonds with
residual maturity of five years would also provide impetus to the
infrastructure development.
 Tax free bonds to the tune of Rs 300 bn by various Government
undertakings including Indian railway finance
corpuration,national highway authority of India, HUDCO and
Ports.
CONT……….
 Reduction in taxation on foreign dividend, of
Indian companies to help infrastructure
companies repatriate money back in the country.
 THANK
YOU