TAX REFORMS
1.DTC Bill to be enacted at the earliest after expeditious examination of the report of the Parliamentary Standing Committee.
2.Drafting of model legislation for the Centre and State GST in concert with States is under progress.
3.GST network to be set up as a National Information Utility and to become operational by August 2012.
DISINVESTMENT POLICY
1.Government has further evolved its approach to divestment of Central Public Sector Enterprises by allowing them a level playing field vis-à-vis the private sector in respect of practices like buy backs and listing at stock exchanges.
2.For 2012-13, 30,000 crore to be raised through disinvestment. At least 51 percent ownership and management control to remain with Government.
STRENGTHENING INVESTMENT ENVIRONMENT
Foreign Direct Investment
· Efforts to arrive at a broadbased consensus in consultation with the State Governments in respect of decision to allow FDI in multi-brand retail upto 51 percent.
Advance Pricing Agreement
· Provision regarding implementation of Advance Pricing Agreement to be introduced in Finance Bill, 2012.
Financial Sector
· Rajiv Gandhi Equity Saving Scheme to allow for income tax deduction of 50 percent to new retail investors, who invest upto 50,000 directly in equities and whose annual income is below 10 lakh to be introduced. The scheme will have a lock-in period of 3 years.
Capital Market
· Various steps proposed to be taken for deepening the reforms in the Capital markets, including simplifying process of IPOs, allowing QFIs to access Indian Bond Market etc.
Legislative Reforms
1.Official amendment to “The Pension Fund Regulatory and Development Authority Bill, 2011”, “The Banking Laws (Amendment) Bill, 2011” and “The Insurance Law (Amendment) Bill, 2008” to be moved in this session.
2.Various Bills proposed to be moved in the Budget session of the Parliament to take forward the process of financial sector legislative reforms.
Capitalisation of Banks and Financial Holding Company
1.To protect the financial health of Public Sector Banks and Financial Institutions,15,888 crore proposed to be provided for capitalisation. Possibility of creating a financial holding company to raise resources to meet the capital requirments of PSU Banks under examination.
2.A central “Know Your Customer” depository to be developed in 2012-13 to avoid multiplicity of registration and data upkeep.
Priority Sector Lending
· Revised guidelines on priority sector lending to be issued after stakeholder consultation.
Financial Inclusion
1.Out of 73,000 identified habitations that were to be covered under “Swabhimaan” campaign by March, 2012, about 70,000 habitations have been covered. Rest likely to be covered by March 31, 2012.
2.As a next step, Ultra Small Branches are being set up at these habitations.
3.In 2012-13, “Swabhimaan” campaign to be extended to more habitations.
Regional Rural Banks
1.Out of 82 RRBs in India, 81 have successfully migrated to Core Banking Solutions and have also joined the National Electronic Fund Transfer system.
2.Proposal to extend the scheme of capitalisation of weak RRBs by another 2 years to enable States to contribute their share.
INFRASTRUCTURE AND INDUSTRIAL DEVELOPMENT
1.During Twelfth Plan period, investment in infrastructure to go up to 50 lakh crore with half of this, expected from private sector.
2.More sectors added as eligible sectors for Viability Gap Funding under the scheme “Support to PPP in infrastructure”.
3.Government has approved guidelines for establishing joint venture companies by defence PSUs in PPP mode.
4.First Infrastructure Debt Fund with an initial size of 8,000 crore launched earlier this month.
5.Tax free bonds of 60,000 crore to be allowed for financing infrastructure projects in 2012-13.
6.A harmonised master list of infrastructure sector approved by the Government.
7.IIFCL has put in place a structure for credit enhancement and take-out finance for easing access of credit to infrastructure projects.
National Manufacturing Policy
· National Manufacturing Policy announced with the objective of raising, within a decade, the share of manufacturing in GDP to 25 per cent and creating of 10 crore jobs.
Power and Coal
1.Coal India Limited advised to sign fuel supply agreements with power plants, having long-term PPAs with DISCOMs and getting commissioned on or before March 31, 2015.
2.External Commercial Borrowings (ECB) to be allowed to part finance Rupee debt of existing power projects.
Transport: Roads and Civil Aviation
1.Target of covering a length of 8,800 kilometre under NHDP next year.
2.Allocation of the Road Transport and Highways Ministry enhanced by 14 percent to 25,360 crore.
3.ECB proposed to be allowed for capital expenditure on the maintenance and operations of toll systems for roads and highways, if they are part of original project.
4.Direct import of Aviation Turbine Fuel permitted for Indian Carriers as actual users.
5.ECB to be permitted for working capital requirement of airline industry for a period of one year, subject to a total ceiling of US $ 1 billion.
6.Proposal to allow foreign airlines to participate upto 49 per cent in the equity of an air transport undertaking under active consideration of the government.
Delhi Mumbai Industrial Corridor
· In September 2011 central assistance of 18,500 crore spread over 5 years approved. US $ 4.5 billion as Japanese participation in the project.
Housing Sector
· Various proposals to address the shortage of housing for low income groups in major cities and towns including allowing ECB for low cost housing projects and setting up of a credit guarantee trust fund etc.
Fertilisers
· Government has taken steps to finalise pricing and investment policies for urea to reduce India’s import dependence in urea.
Textiles
1.Government has announced a financial package of 3,884 crore for waiver of loans of handloom weavers and their cooperative societies.
2.Two more mega handloom clusters, one to cover Prakasam and Guntur districts in Andhra Pradesh and another for Godda and neighbouring districts in Jharkhand to be set up.
3.Three Weaver’s Service Centres one each in Mizoram, Nagaland and Jharkhand to be set up for providing technical support to poor handloom weavers.
4.500 crore pilot scheme announced for promotion and application of Geo-textiles in the North Eastern Region.
5.A powerloom mega cluster to be set up in Ichalkaranji in Maharashtra with a budget allocation of 70 crore.
Micro, Small and Medium Enterprises
1.5,000 crore India Opportunities Venture Fund to be set up with SIDBI.
2.To enable greater access to finance by Small and Medium Enterprises (SME), two SME exchanges launched in Mumbai recently.
3.Policy requiring Ministries and CPSEs to make a minimum of 20 per cent of their annual purchases from MSEs approved. Of this, 4 per cent earmarked for procurement from MSEs owned by SC/ST entrepreneurs.
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