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Tuesday, July 07, 2009

Daily News Roundup - July 7 2009


South African telecom major MTN has said that it is still in talks with Bharti Airtel for a potential transaction. (ET)

Total budget expenditure for 2009-10 will be Rs10,280bn, 36% jump over what was budgeted last fiscal. (BS)

The projected market borrowings of Rs4,510bn are about Rs890bn more than what was provided for in the Interim Budget for 2009-10 on February 16. (BS)

Fiscal deficit in 2009-10 is proposed at 6.8 per cent of GDP. (BS)

The total fiscal stimulus for 2008-09 amounts to Rs1,860bn, 3.55 of GDP. (BS)

Fringe Benefit Tax (FBT) and the Commodity Transaction Tax (CTT), besides the 10% surcharge on taxable personal incomes above Rs1mn. (BS)

The FM has abolished the fringe benefit tax (FBT), though some of what the FBT covered (including employee stock option programmes) will now be taxed as perquisites. (BS)

Goods and Services Tax (GST) will be implemented by April 2010. (BS)

Minimum alternative tax (MAT) has been increased to 15% of book profit from 10% earlier and the period allowed to carry forward the tax credit under MAT has been extended from seven years to ten years. (BS)

The government plans to mop up Rs350bn from the auction of 3G spectrum, likely before December end. (ET)

India Infrastructure Finance Company (IIFCL) will pick up infrastructure loans from banks’ books. (ET)

Airports Authority of India (AAI) has been allocated ~Rs992mn for development of airports. (ET)

The government has proposed to move towards a nutrient based subsidy regime (direct subsidy) for fertilisers from the current product pricing regime. (FE)

The government has proposed a disinvestment target of Rs11.2bn for FY10. (ET)

Leading auto manufacturers are set to reduce the prices for passing on the benefit of the excise duty cut on big cars with engine capacities of 2,000 cc and above by Rs5,000 per unit to consumers. (ET)

Government has exempted packaged software from 8% excise and countervailing duty. (ET)

Allocation to the Accelerated Power Development and Reform Programme (APDRP) was Rs20bn, 160% over the budget estimates of 2008-09. (BS)

The National Highways Authority of India (NHAI) received a higher allocation of Rs85.8bn in 2009-10, up from Rs69.7bn spent in 2008-09 in the revised estimates. (BS)

The Railways received Rs50bn over Rs108bn made in the interim Budget for 2009-10 to Rs158bn. (BS)

Allocation for the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), the flagship program for urban infrastructure, has been stepped up by 87% to Rs.128.8bn. (BS)

The FM has extended the tax holiday available for oil production and refining to gas production (under section 80-IB (9) of the Income Tax Act) from oil and gas blocks, which will be awarded under the eighth round of New Exploration and Licensing Policy (Nelp-VIII). (BS)

IIFCL will refinance 60% of commercial bank loans in PPP in critical sectors over the next 15 to 18 months. (BS)

Allocation under Accelerated Irrigation Benefit Programme (AIBP) increased 75% yoy. (BS)

Target for agriculture credit raised to Rs3,250bn in 2009-10. (BS)

Export Credit Guarantee scheme extended till March 2010. (BS)

Customs duty on gold import has been doubled from Rs100/10 grams to Rs200/10 grams. (BS)