In this paper we will discuss the possible plans and measures that will be taken in budget 2008. This year the government will focus more on infrastructure and therefore, some sectors, like power and telecommunication may attract huge investments.
Moreover, the government will also invest into the unlisted equity of the infrastructure projects beside the listed ones. 2008 budget may grant "infrastructure status" to the pipelines that is distributing petroleum and crude products. In the 2007 budget, similar kind of benefits were announced for the gas distribution network.
However, budget 2008 may bring the total fund allocation for the physical infrastructure down and the government will be investing more in the private sectors.
- The government wants to provide sufficient funds to the power sector. So it is planning to allow the inflow of venture capital funds in this sector. Therefore a pass through status for this will be restored in the 2008 budget.
- Within the 11th five year plan period the government is aiming to add 78,577 mega watt capacity. Therefore for this a limp sum investment, more than Rs 10,30,000 crores, will be needed. Therefore, in the budget 2008, there will be a proposal for restoring tax incentives to advance the investment process.
- In the 2008 budget, the government may announce several big investments in the coal mining sector. Some giant power companies may take over the small local mines. 2008 budget may comprise the coal mining sector in the infrastructure sector list.
- Some fiscal packages like, concessional duties on capital equipment imports and tax holidays on the income taxes for ten years, will also be featured in the budget.
Telecommunication and Broadcasting Sector:
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