Govt package for auto, realty, chemicals soon

Concerned over negative growth in industrial output, the government may next week announce a second stimulus package to spur demand in housing, auto, chemicals and other sectors and beat the downturn.

According to sources in the government, the package -- the second in the same month -- would also include safeguards for chemical, aluminium and tyre producers against cheaper imports.

Besides thinking of increasing tax rebate on home loans, the government is likely to ask realty players to reciprocate by slashing residential property prices, the sources said, adding this would be the last package.

On December 7, the government virtually unveiled a mini-budget that included Rs 20,000 crore (Rs 200 billion) worth additional spending on infrastructure and cut in excise duty across-the-board. It also provided for a banks' package that was aimed at making home loans cheaper.