Incentives to bring infrastructure boom
A Special Correspondent in New Delhi
The Bharatiya Janata Party's maiden Budget, to be presented on June 1, is expected to offer several incentives to domestic investors with a view to increasing investment in the crucial infrastructure sector.
In this regard, sources said, serious thought is being given to the introduction of a modified Voluntary Disclosure of Income Scheme. This is expected to increase the flow into the infrastructure sector as no questions would be asked about the source of income, like in the earlier VDIS introduced by then finance minister P Chidambaram. The scheme had netted Rs 100.50 billion.
However, it is not clear how the government proposes to re-introduce the scheme considering that the Supreme Court had made it clear that no new VDIS would be encouraged.
Sources said the measures will be part of Finance Minister Yashwant Sinha's package of incentives for the revival of the capital markets. The ministry officials feel that the measures will contribute to the revival of investor confidence in the markets.
Among the proposals being considered for the infrastructure sector is the introduction of a zero-coupon tax-free bond which would be listed on all the major exchanges. They could be redeemed at face value.
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