10-year tax holiday for investments in infrastructure continues. For investments made prior to March 2003, the tax holiday is applicable on retrospective basis.
There was also mention of increasing user charges for services provided by the government. But there is no clarity on that |
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An accelerated rural electrification program with an outlay of Rs 1.6 bn was provided.
APDRP outlay enhanced to Rs 35 bn (from Rs 15 bn earlier).
The focus of reform has shifted from generation to transmission and distribution.
Setting up of an infrastructure equity fund of Rs 10 bn to provide equity investment for infrastructure projects. |
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For development of the power infrastructure, the FM announced that mega power status would now be given to all power projects meeting the existing norms.
Customs duty reduced on high voltage equipments from 25% to 5%.
Import of capital goods relating to water treatment exempt from duties. |