Taxation Budget Decisions

8/13/2019 Taxation Budget Decisions

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Enhancement of the corpus Fund of the Maulana AzadEducation Foundation (MAEF) from `750 crore to `1250crore has been approved by the Expenditure FinanceCommittee.Act ion com ple t edInter-ministerial consultations have been completed and thenote for Cabinet Committee on Economic Affairs is beingfinalized.Work in p rog res sBudgetary support of ` 21,239 crore for National HealthMission has been provided.Act ion com ple t ed`4727 crore has been provided under medical education,training and research.Act ion com ple t ed

Budget 2013-20142S.No. Para Budget Announcement Status of ImplementationNo.Position reported on 7 th January, 2014

An amount of `150 crore has been budgeted under theNational Programme for the Health Care of Elderly.Act ion com ple t edThe final Memo has been submitted for approval of theEFC.Work in p rog res s

An amount of `1975 crore has been provided at BE stagefor establishment of AIIMS type Super Specialty Hospitalscum-teaching institutions and upgrading of StateGovernment Hospitals. Six new AIIMS like institutions arelikely to become operational in January, 2014.Act ion com ple t edThe Cabinet has approved the Nalanda University(Amendment) Bill, 2013 in August, 2013. Thereafter, the

Bill was referred to the Standing Committee which hasconsidered it in two meetings held on October 4 and 22,2013. The Bill is being revised as per the recommendationsof the Standing Committee for placing before the Parliament.Work in p rog res sThe Cabinet has approved the multi-sectoral NutritionProgramme on 24.09.2013. Administrative approval hasbeen issued for implementation of the scheme.Act ion com ple t edThe EFC has approved the proposal on 07.01.2014.

Approval of the Cabinet will now be obtained.Work in p rog res s6. 26 The National Programme for the Health Careof Elderly is being implemented in 100 selected

districts of 21 States. Eight regional geriatriccentres are being funded for the developmentof dedicated geriatric departments. I proposeto provide `150 crore for this programme.[Nodal Ministries/Departments: Department ofHealth & Family Welfare]7. 27 Ayurveda, Unani, Siddha and Homoeopathyare being mainstreamed through the NationalHealth Mission. I propose to allocate `1,069crore to the Department of AYUSH.


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[Nodal Ministry/Department: Department of Ayurveda, Yoga and Naturopathy, Unani,Siddhaa & Homeopathy]8. 28 The six AIIMS-like institutions have admittedtheir first batch of students in the academicsession that commenced in September 2012.The hospitals attached to the colleges will befunctional in 2013-14. I propose to provide asum of `1,650 crore for these institutions.[Nodal Ministry/Department: Department ofHealth & Family Welfare]9. 33 The reconstruction of the Nalanda Universityhas gathered momentum. The Government iscommitted to the creation of Nalanda Universityas a centre of educational excellence.[Nodal Ministry/Department: Ministry ofExternal Affairs]10. 35 Maternal and child malnutrition in a country withabundant foodgrains is a shame that we mustovercome. A multi-sectoral programme thatwas announced last year will be implementedin 100 districts during 2013-14 and it will bescaled up to cover 200 districts the year after.I propose to allocate a sum of `300 crore forthe programme in 2013-14.[Nodal Ministries/Departments: Department ofExpenditure, Ministry of Women & ChildDevelopment]11. 37 There are still 2,000 arsenic- and 12,000fluoride-affected rural habitations in the country.I propose to provide `1,400 crore towardssetting up water purification plants.[Nodal Ministries/Departments: Ministry ofDrinking Water & Sanitation]3S.No. Para Budget Announcement Status of ImplementationNo.Position reported on 7 th January, 2014The Cabinet approved the PMGSY-II scheme on01.05.2013. Guidelines of PMGSY-II have also beenfinalized and uploaded on the website of PMGSY.Act ion com ple t edThe Central Sanctioning and Monitoring Committee (CSMC)has so far sanctioned purchase of 9532 buses at a cost of`4800 crore.Act ion com ple t ed

Agency wise/ State wise targets have been communicatedby NABARD. Banks have disbursed `3,87,048 crore tillNovember, 2013.Act ion com ple t edThe Cabinet has accorded approval for the interestsubvention scheme for short term crop loan on 16.08.2013.Act ion com ple t edState wise allocation has been finalized and communicated.

An amount of `599.17 crore has been released so far.Act ion com ple t ed12. 39 The objectives of PMGSY have beensubstantially fulfilled in several States.Naturally, these States wish to do more. Hence,


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it is proposed to carve out PMGSY-II andallocate a portion of the funds to the newprogramme that will benefit States such as

Andhra Pradesh, Haryana, Karnataka,Maharashtra, Punjab and Rajasthan. Detailsof PMGSY-II will be announced by the Ministerof Rural Development in due course.[Nodal Ministry/Department: Department ofRural Development]13. 40 JNNURMThe Jawaharlal Nehru National Urban RenewalMission (JNNURM) is being continued in the12th Plan. The 14,000 buses sanctioned during2009 to 2012 have made a big contribution tourban transport. I propose to provide `14,873crore for JNNURM, as against the RE of `7,383crore in the current year. Out of this, asignificant portion will be used to support thepurchase of upto 10,000 buses, especially bythe hill States.[Nodal Ministries/Departments: Ministry ofUrban Development]14. 43 Agricultural Credit

Agricultural credit is the driver of agriculturalproduction. We will exceed the target of`575,000 crore fixed for 2012-13. For 2013-14, I propose to increase the target to `700,000crore.[Nodal Ministries/Departments: Department of

Agriculture & Cooperation,Department ofFinancial Services]15. 44 The interest subvention scheme for short-termcrop loans will be continued and a farmer whorepays the loan on time will be able to get creditat 4 percent per annum. So far, the schemehas been applied to loans extended by publicsector banks, RRBs and cooperative banks. Ipropose to extend the scheme to crop loansborrowed from private sector scheduledcommercial banks in respect of loans givenwithin the service area of the branch concerned.[Nodal Ministry/Department: Department ofFinancial Services]16. 45 Green Revolution Bringing the greenrevolution to eastern India has been aremarkable success. Assam, Bihar,4S.No. Para Budget Announcement Status of ImplementationNo.Position reported on 7 th January, 2014The Guidelines of the scheme have been formulated anddisseminated. State-wise allocation has been finalized andcommunicated. So far an amount of `224.25 crore has beenreleased to Punjab/Haryana/ Uttar Pradesh.Act ion com ple t edState-wise allocation for Rashtriya Krishi Vikas Yojna(RKVY) has been finalized and `6410.82 crore has beenreleased. Action Plans for National Food Security Mission(NFSM) have also been formulated and `1711.96 crore has


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been released.Act ion com ple t edIncreased budgetary support for integrated watershedprogramme has been provided.Act ion com ple t ed

Action plan for the scheme for introducing new crop varietiesrich in micro-nutrients has been finalized and `96.02 crorehave been released.Act ion com ple t edChhattisgarh and West Bengal have increasedtheir contribution to rice production. I proposeto continue to support the eastern Indian Stateswith an allocation of `1000 crore in 2013-14.[Nodal Ministry/Department:Department of

Agriculture & Cooperation]17. 46 The original Green Revolution States face theproblem of stagnating yields and overexploitationof water resources. The answerlies in crop diversification. I propose to allocate`500 crore to start a programme of cropdiversification that would promote technologicalinnovation and encourage farmers to choosecrop alternatives.[Nodal Ministries/Departments:Department of

Agriculture & Cooperation]18. 47 The Rashtriya Krishi Vikas Yojana is intendedto mobilise higher investment in agriculture andthe National Food Security Mission is intendedto bridge yield gaps. I propose to provide`9,954 crore and `2,250 crore, respectively, forthese two programmes.[Nodal Ministry/Department:Department of

Agriculture & Cooperation]19. 48 Small and marginal farmers are vulnerableeverywhere, and especially so in drought proneand ecologically-stressed regions. Watershedmanagement is crucial to improve productivityof land and water use. I propose to increasethe allocation for the integrated watershedprogramme from `3,050 crore in 2012-13 (BE)to `5,387 crore.[Nodal Ministry/Department:Department ofLand Resources]20. 49 Eminent agricultural scientists have suggestedthat we start a pilot programme on Nutri-Farmsfor introducing new crop varieties that are richin micro-nutrients such as iron-rich bajra,protein-rich maize and zinc-rich wheat. Ipropose to provide a sum of upto `200 crore tostart the pilots. Ministry of Agriculture willformulate a scheme and I hope that agribusinesses and farmers will come together tostart a sufficient number of pilots in the districtsmost affected by malnutrition.[Nodal Ministries/Departments:Department of

Agriculture & Cooperation,Department of Agricultural Research & Education]5S.No. Para Budget Announcement Status of Implementation


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No.Position reported on 7 th January, 2014Foundation stone for National Institute of Biotic StressManagement (NIBSM) at Raipur has been laid. Land hasbeen identified in Ranchi for Indian Institute of AgricultureBiotechnology.Work in p rog res s

The scheme has been extended to the entire State of Keralaand an amount of `50 crore has already been released.Act ion com ple t edThe EFC in its meeting held on 11.10.2013 recommendedimplementation of the scheme for EGF and CGF during12 th Plan with an outlay of `250 crore to cover FPCs.Budgetary provision of `150 crore i.e. `50 crore as EquityGrant Fund and `100 crore for corpus for Credit GuaranteeFund has been approved.Act ion com ple t edThe note for Cabinet Committee of Economic Affairs hasbeen finalized and is being circulated.Work in p rog res s21. 50 The National Institute of Biotic StressManagement for addressing plant protectionissues will be established at Raipur,Chhattisgarh. The Indian Institute of

Agricultural Bio-technology will be establishedat Ranchi, Jharkhand and will serve as acentre of excellence in agriculturalbio-technology.[Nodal Ministries/Departments:Department of

Agriculture & Cooperation]22. 51 A pilot scheme to replant and rejuvenatecoconut gardens that was implemented insome districts of Kerala and the Andaman &Nicobar Islands will be extended to the entireState of Kerala, and I propose to provide anadditional sum of `75 crore in 2013-14.[Nodal Ministries/Departments: Department of

Agriculture & Cooperation]23. 52 Farmer Producer Organizations FarmerProducer Organizations (FPO), includingFarmer Producer Companies (FPC), haveemerged as aggregators of farm produce andlink farmers directly to markets. To signal oursupport to them, I intend to provide matchingequity grants to registered FPOs upto amaximum of `10 lakh per FPO to enable themto leverage working capital from financialinstitutions. I propose to provide `50 crorefor this purpose. Besides, a Credit GuaranteeFund will also be created in the Small Farmers

Agri Business Corporation with an initialcorpus of `100 crore. I urge StateGovernments to support such FPOs throughnecessary amendments to the APMC Act andin other ways.[Nodal Ministries/Departments: Department of

Agriculture & Cooperation]24. 53 National Livestock MissionThe National Livestock Mission will be


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launched in 2013-14 to attract investment andto enhance productivity taking into accountlocal agro-climatic conditions. I propose toprovide `307 crore for the Mission. There willbe a sub Mission for increasing the availabilityof feed and fodder.[Nodal Ministries/Departments: Department of

Animal Husbandry, Dairying & Fisheries]6S.No. Para Budget Announcement Status of ImplementationNo.Position reported on 7 th January, 201425. 54 Food Security Food security is as much a basichuman right as the right to education or theright to health care. The National Food SecurityBill is a promise of the UPA Government. Isincerely hope that Parliament will pass the Billas early as possible. Honble Members will be happy to know that I have set apart `10,000crore, over and above the normal provision forfood subsidy, towards the incremental cost thatis likely under the Act.[Nodal Ministries/Departments: Department ofFood & Public Distribution,Department ofExpenditure]26. 55 IV. INVESTMENT, INFRASTRUCTURE ANDINDUSTRYThe growth rate of an economy is correlatedwith the investment rate. The key to restartthe growth engine is to attract more investment,both from domestic investors and foreigninvestors. Investment is an act of faith. Wewill improve communication of our policies toremove any apprehension or distrust in theminds of investors, including fears about undueregulatory burden or application of tax laws.`Doing business in India must be seen as easy, friendly and mutually beneficial.[Nodal Ministries/Departments: Department ofIndustrial Policy & Promotion,Ministry ofCorporate Affairs]27. 56 While every sector can absorb new investment,it is the infrastructure sector that needs largevolumes of investment. The 12th Plan projectsan investment of USD 1 trillion or `55,00,000crore in infrastructure. The Plan envisages thatthe private sector will share 47 percent of theinvestment. Besides, we need new andinnovative instruments to mobilise funds for thisorder of investment. Government has takenor will take the following measures to increaseinvestment in infrastructure:

Infrastructure Debt Funds (IDF) will beencouraged. These funds will raiseresources and, through take-out finance,credit enhancement and other innovativemeans, provide long-term low-cost debt forinfrastructure projects. I am happy to reportthat four IDFs have been registered with


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SEBI so far and two of them were launchedin the month of February, 2013.

India Infrastructure Finance CorporationLtd (IIFCL), in partnership with the AsianDevelopment Bank, will offer creditThe NFSB 2013 has been passed by the Parliament andthe NFS Act, 2013 has been notified on 10.09.2013.Act ion com ple t ed

A report of the committee constituted under thechairmanship of Shri M.Damodaran, to conduct a study intothe regulatory frame work, has been placed on the websiteof Ministry of Corporate Affairs for seeking comments ofthe public and stakeholders and for inviting the commentsof the State Governments and the Central Ministries. eBizplatform is likely to be launched on 20.01.2014 byDepartment of Industrial Policy and Promotion (DIPP).Work in p rog res sTo boost investment climate the income of IDFs has beenexempted from income tax. So far, two IDF-NBFCs andfour IDF-MFs have been created. Four more are in thepipeline.CCEA on 24.9.2013, has also approved a proposal onOperationalisation of Infrastructure Debt Funds (IDFs) -Removal of Certain Impediments.IIFCL guarantee document has been executed in respectof the 1 st pilot transaction. ADB has approved a guaranteefacility to issue partial credit guarantees without a7S.No. Para Budget Announcement Status of ImplementationNo.Position reported on 7 th January, 2014enhancement to infrastructure companiesthat wish to access the bond market to taplong term funds.

In the last two years, a number ofinstitutions were allowed to issue tax freebonds. They raised `30,000 crore in2011-12 and are expected to raise about`25,000 crore in 2012-13. I propose toallow some institutions to issue tax freebonds in 2013-14, strictly based on needand capacity to raise money in the market,upto a total sum of `50,000 crore.

Multilateral Development Banks are keento assist in efforts to promote regionalconnectivity. Combining the Look East policy and the interests of the North EasternStates, I propose to seek the assistance ofthe World Bank and the Asian DevelopmentBank to build roads in the North EasternStates and connect them to Myanmar.

NABARD operates the Rural InfrastructureDevelopment Fund (RIDF). RIDF hassuccessfully utilized 18 tranches so far. Ipropose to raise the corpus of RIDF-XIX in2013-14 to `20,000 crore.

Pursuant to the announcement made last


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year, a sum of `5000 crore will be madeavailable to NABARD to financeconstruction of warehouses, godowns, silosand cold storage units designed to storeagricultural produce, both in the public andthe private sectors. This window will alsofinance, through the State Governments,construction of godowns by panchayats toenable farmers to store their produce.[Nodal Ministries/Departments: Department ofFinancial Services,Department of Economic

Affairs]28. 57 Road Construction The road constructionsector has reached a certain level of maturity.But it faces challenges not envisaged earlier,including financial stress, enhancedconstruction risk and contract managementgovernment counter guarantee for an amount up to `7618million. Further, ADB has accorded in -principle approval to participate in 3 of the 4 pilot transactions with proposedbond issue of about `1500 crore. IIFCL is also in discussionswith 3-4 more infrastructure projects with proposed bondissue size of about `2000 crore.

As on 01.01.2014, an amount of `30073.66 crore has beenraised.

ADB assisted $500 million project - SASEC Roadconnectivity Investment programme has been formulatedby Ministry of Road Transport & Highways to promoteregional connectivity by developing roads in the North-Eastregion and also linking with Myanmar as part of th e look east policy. Department of Economic Affairs (DEA) has also approved the proposal of $500 million for ADB assistance.Mizoram State Roads Project-II has been posed to the WorldBank in April, 2013. Subsequently, at the request of theState Government, the project stretches were re-examinedby the DEA, and a revised proposal has been posed to theWorld Bank, on 27.9.2013, for 100% IDA funding of US$237million.`20,000 crore have been allocated to RIDF-XIX to beoperated by NABARAD.RBI has allocated `5,000 crore for Warehouse InfrastructureFund on 14.6.2013. Action completedAct ion com ple t edBoth the draft Cabinet Note and draft Bill for creation ofRegulatory Authority will be circulated shortly. So far, 13Projects for the total length of 1203.647 kms have beenawarded.Work in p rog res s8S.No. Para Budget Announcement Status of ImplementationNo.Position reported on 7 th January, 2014issues that are best addressed by anindependent authority. Hence, Governmenthas decided to constitute a Regulatory

Authority for the road sector. Bottlenecksstalling road projects have been addressed and3,000 kms of road projects in Gujarat, MadhyaPradesh, Maharashtra, Rajasthan and Uttar


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Pradesh will be awarded in the first six monthsof 2013-14.[Nodal Ministries/Departments: Ministry ofRoad Transport & Highways]29. 58 Cabinet Committee on InvestmentRevival of investment in the industrial sector,especially manufacturing, is a key challenge.Many projects are stalled because they areunable to clear regulatory hurdles. TheCabinet Committee on Investment (CCI) hasbeen set up to monitor investment proposalsas well as projects under implementation,including stalled projects, and guide decisionmakingin order to remove bottlenecks andquicken the pace of implementation. Twomeetings of the CCI have been held alreadyand decisions were taken in respect of anumber of oil and gas, power, and coalprojects. CCI will take up some more projectsshortly.[Nodal Ministry/Department: Department ofEconomic Affairs]30. 59 New InvestmentTo attract new investment and to quicken theimplementation of projects, I propose tointroduce an investment allowance for new highvalue investments. A company investing `100crore or more in plant and machinery duringthe period 1.4.2013 to 31.3.2015 will be entitledto deduct an investment allowance of 15percent of the investment. This will be inaddition to the current rates of depreciation.There will be enormous spill-over benefits tosmall and medium enterprises.[Nodal Ministries/Departments: Department ofEconomic Affairs]31. 60 The National Electronics Policy 2012 isintended to promote manufacture of electronicgoods in India. We recognise the pivotal roleof semiconductor wafer fabs in the eco-systemof manufacture of electronics. I propose toprovide appropriate incentives toCCI has already held more than 9 meetings wherein projectsrelated to Oil and Gas, Power and Coal sector were cleared.Work in p rog res sThis has been implemented as part of the Finance Act,2013.Action completedAct ion com ple t edCabinet has approved a proposal to provide incentives tosemiconductor wafer fab manufacturing facilities on12.09.2013.Act ion com ple t ed9S.No. Para Budget Announcement Status of ImplementationNo.Position reported on 7 th January, 2014semiconductor wafer fab manufacturingfacilities, including zero customs duty for plantand machinery.


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[Nodal Ministries/Departments: Department ofElectronics & Information Technology,Department of Revenue]32. 61 SavingsIncreasing savings and their optimal allocationfor productive uses lead to higher economicgrowth. After touching a high of 36.8 percentin 2007-08, gross domestic saving fell by 6percentage points in 2011-12. The privatesector, comprising households and corporates,remains the main contributor to saving. Thehousehold sector must be incentivised to savein financial instruments rather than buy gold.Hence, I propose the following measures:

Firstly, the Rajiv Gandhi Equity SavingsScheme will be liberalised to enable thefirst time investor to invest in mutual fundsas well as listed shares and she can doso, not in one year alone, but in threesuccessive years. The income limit will beraised from `10,00,000 to `12,00,000;

Secondly, a person taking a loan for hisfirst home from a bank or a housing financecorporation upto `25,00,000 during theperiod 1.4.2013 to 31.3.2014 will be entitledto an additional deduction of interest of upto`100,000. This will promote homeownership and give a fillip to a number ofindustries like steel, cement, brick, wood,glass etc. besides jobs to thousands ofconstruction workers.

Thirdly, in consultation with RBI, I proposeto introduce instruments that will protectsavings from inflation, especially thesavings of the poor and middle classes.These could be Inflation Indexed Bonds orInflation Indexed National SecurityCertificates. The structure and tenor of theinstruments will be announced in duecourse.[Nodal Ministries/Departments: Department ofRevenue,Department of Economic Affairs]33. 62 Industrial CorridorsThe Delhi Mumbai Industrial Corridor (DMIC)project has made rapid progress. Plans forseven new cities have been finalised and workon two new smart industrial cities at Dholera,The provisions of the Income Tax Act, 1961 have beenamended by the Finance Act, 2013.This has been given effect to by inserting Section 80EE inthe Income Tax Act, 1961 through Finance Bill, 2013.Inflation indexed bonds have been operationalized.Act ion com ple t edLand acquisition for phase-I of Shendra- Bidkin IndustrialPark and Dholera Special Investment Region is at anadvanced stage. Shareholders Agreement and State Support Agreement for the formation of node/city level SPV10


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S.No. Para Budget Announcement Status of ImplementationNo.Position reported on 7 th January, 2014Gujarat and Shendra Bidkin, Maharashtra willstart during 2013-14. We acknowledge thesupport of the Government of Japan. In orderto dispel any doubt about funding, I wish tomake it clear that we shall provide, if required,additional funds during 2013-14 within the shareof the Government of India in the overall outlayfor the project.[Nodal Ministries/Departments: Department ofIndustrial Policy & Promotion]34. 65 Leh-Kargil Transmission LineTo improve power supply in the Leh-Kargilregion and connect the Ladakh region to thenorthern grid, the Government will construct atransmission system from Srinagar to Leh at acost of `1,840 crore. I propose to provide `226crore in 2013-14 for the project.[Nodal Ministries/Departments: Ministry ofPower]35. 66 PortsTwo new major ports will be established inSagar, West Bengal and in Andhra Pradesh toadd 100 million tonnes of capacity. In addition,a new outer harbour will be developed in theVOC port at Thoothukkudi, Tamil Nadu throughPPP at an estimated cost of `7,500 crore.When completed, this will add 42 million tonnesof capacity.[Nodal Ministries/Departments: Ministry ofShipping]36. 67 National WaterwaysFive inland waterways have been declared asnational waterways. I am happy to announcethat the Minister of Water Resources will movea Bill in Parliament to declare the Lakhipur Bhanga stretch of river Barak in Assam as thesixth national waterway. Preparatory work isunderway to build a grid connecting waterways,roads and ports. The 12th Plan has anadequate outlay for capital works, includingdredging, on the national waterways. Theobjective is to choose barge operators, throughcompetitive bidding, to transport bulk cargo onthe national waterways. The first transportcontract has been awarded in West Bengalfrom Haldia to Farakka.[Nodal Ministries/Departments: Ministry ofShipping]has been finalized with the State Nodal Agency and theapproval of State Government is awaited.Work in P rogres sThe CCEA has approved the proposal for construction of a220 KV Transmission system from Alusteng (Srinagar) toLeh (via Drass, Kargil & Khalsti 220/66 kV PGCILsubstations) and 66 kV Power Grid Corporation of IndiaLimited (PGCIL) interconnection system for Drass, Kargil,


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Khalsti and Leh substations in Jammu & Kashmir (J&K) atan estimated total cost of `1788.41 crore.Act ion com ple t edThe Cabinet has approved the proposal for establishmentof two new Ports in Andhra Pradesh (Dugarajapatnam) andWest Bengal (Sagar) on 9.05.2013.The Detailed Project Report (DPR) of the Outer HarbourProject of V.O. Chidambaranar Port, Tuticorin has beencompleted. The Port Trust Board accepted the DetailedProject Report in its meeting held on 12.11.2013.Act ion com ple t edThe National Waterway (Lakhipur-Bhanga stretch of riverBarak in Assam) Bill 2013 has been passed by the RajyaSabha on 1.8.2013. It is presently pending before the LokSabha.Act ion com ple t ed11S.No. Para Budget Announcement Status of ImplementationNo.Position reported on 7 th January, 201437. 68 Oil and GasThe oil and gas exploration policy will bereviewed to move from profit sharing to revenuesharing contracts. A policy to encourageexploration and production of shale gas will beannounced. The natural gas pricing policy willbe reviewed and uncertainties regarding pricingwill be removed. NELP blocks that wereawarded but are stalled will be cleared. The 5MMTPA LNG terminal in Dabhol, Maharashtrawill be fully operational in 2013-14.[Nodal Ministries/Departments:Ministry ofPetroleum & Natural Gas]38. 69 CoalDespite abundant coal reserves, we continueto import large volumes of coal. Coal importsduring the period April-December, 2012 havecrossed 100 million tonnes. It is estimated thatimports will rise to 185 million tonnes in 2016-17. If the coal requirements of the existingpower plants and the power plants that willcome into operation by 31.3.2015 are taken intoaccount, there is no alternative except to importcoal and adopt a policy of blending and pooledpricing. In the medium to long term, we mustreduce our dependence on imported coal. Oneof the ways forward is to devise a PPP policyframework, with Coal India Limited as one ofthe partners, in order to increase the productionof coal for supply to power producers and otherconsumers. These matters are under activeconsideration and the Minister of Coal willannounce Governments policies in this behalf in due course.[Nodal Ministries/Departments: Ministry ofCoal]39. 70 PowerHonble Members are aware that the Government has approved a scheme for the


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41. 72 To provide greater support to MSMEs, Ipropose to enhance the refinancing capabilityof SIDBI from the current level of `5,000 croreto `10,000 crore per year.[Nodal Ministries/Departments: Ministry ofMicro, Small & Medium Enterprises]42. 73 SIDBI set up the India Microfinance Equity Fundin 2011-12 with budgetary support of `100 croreto provide equity and quasi-equity to MicroFinance Institutions (MFI). An amount of `104crore has been committed to 37 MFIs. I haveallocated `100 crore to the IME Fund in thebudget and I now propose to provide anothersum of `100 crore to the Fund.[Nodal Ministries/Departments: Department ofFinancial Services,Department of Economic

Affairs (Budget Division)]43. 74 The Factoring Act 2011 has been passed byParliament. I propose to provide a corpus of`500 crore to SIDBI to set up a CreditGuarantee Fund for factoring.[Nodal Ministries/Departments: Department ofFinancial Services]44. 75 Tool Rooms and Technology DevelopmentCentres set up by the Ministry of Micro, Smalland Medium Enterprises have done well inextending technology and design support tosmall businesses. I propose to provide, withWorld Bank assistance, a sum of `2,200 croreduring the 12th Plan period to set up 15additional Centres.[Nodal Ministries/Departments: Ministry ofMicro, Small & Medium Enterprises,Department of Economic Affairs]45. 76 Incubators play an important role in mentoringnew businesses which start as a small or`10,000 crore have been allocated to SIDBI.Act ion com ple t ed`100 crore have already been released to SIDBI. Theadditional amount will be released to SIDBI after revision inthe guidelines of IMEF scheme.Act ion com ple t edThe EFC has approved the proposal on 10.12.2013. Aproposal has been sent for consideration of the Cabinet.Work in p rog res sThe EFC Memo has been finalized and submitted for theconsideration of the Committee. The technical discussionswith World Bank, for IBRD assistance of US$200 million,were held successfully on 20.12.2013.The Technical Discussions will be upgraded to the statusof Negotiations on approval of the scheme by the EFC andthe CCEA.Work in p rog res sThe new Companies Act, 2013 has been notified. The draftRules are underway and announcement will be given effect13S.No. Para Budget Announcement Status of ImplementationNo.Position reported on 7 th January, 2014


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medium business. The new Companies Billobliges companies to spend 2 percent ofaverage net profits under Corporate SocialResponsibility (CSR). I am glad to announcethat the Ministry of Corporate Affairs will notifythat funds provided to technology incubatorslocated within academic institutions andapproved by the Ministry of Science andTechnology or Ministry of MSME will qualifyas CSR expenditure.[Nodal Ministry/Department: Ministry ofCorporate Affairs]46. 77 TextilesI propose to continue the TechnologyUpgradation Fund Scheme (TUFS) for thetextile sector in the 12th Plan with an investmenttarget of `151,000 crore. The major focuswould be on modernisation of the powerloomsector. I propose to provide `2,400 crore in2013-14 for the purpose.[Nodal Ministries/Departments: Ministry ofTextiles]47. 78 Textile parks have been set up under Schemefor Integrated Textile Parks (SITP). It isproposed to set up Apparel Parks within theSITPs to house apparel manufacturing units.To incentivise such Apparel Parks, I proposeto allocate `50 crore to the Ministry of Textilesto provide an additional grant of upto `10 croreto each Park.[Nodal Ministries/Departments: Ministry ofTextiles]48. 79 A new scheme with an outlay of `500 crorecalled the Integrated Processing DevelopmentScheme will be implemented in the 12th Planto address the environmental concerns of thetextile industry, including improving the effluenttreatment infrastructure. I propose to provide`50 crore in 2013-14 for the scheme.[Nodal Ministries/Departments: Ministry ofTextiles]49. 80 The handloom sector is in distress. A very largeproportion of handloom weavers are womenand belong mainly to the backward classes. Ipropose to accept their demand for workingcapital and term loans at a concessionalinterest of 6 percent. 150,000 individualweavers and 1,800 primary cooperativesocieties will benefit in 2013-14. I propose toby notifying technology incubators as CSR expenditure,once the schedule VII of the Companies Act 2013 is notified.Work in P rogres sThe Cabinet Note on TUFS has been approved in August,2013. Subsidies have been increased from 20 to 30 percentMMS. Also a pilot scheme of `300 crore has been approvedfor hire purchase for power loom weavers.Act ion com ple t edThe CCEA note pertaining to SITP and Apparel parks hasbeen approved on 03.10.2013.


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Act ion com ple t edThe CCEA has approved the scheme on 30.10.2013.Process is on for inviting expression of interest for ProjectManagement Consultants.Act ion com ple t edInterest subvention scheme has been approved by theGovernment.Act ion com ple t ed14S.No. Para Budget Announcement Status of ImplementationNo.Position reported on 7 th January, 2014allocate an additional sum of `96 crore in2013-14 to the Ministry of Textiles for interestsubvention.[Nodal Ministries/Departments: Ministry ofTextiles]50. 81 India has a rich heritage of traditional industries.Khadi, village industries and coir were takenup for development during the 11th Plan underthe Scheme of Fund for Regeneration ofTraditional Industries (SFURTI). The 12th Planhas provided an outlay of `850 crore. I proposeto leverage assistance from MultilateralDevelopment Banks to extend SFURTI to 800clusters during the 12th Plan. 400,000 artisansare expected to be benefited.[Nodal Ministries/Departments: Ministry ofMicro, Small & Medium Enterprises]51. 82 Foreign TradeI look forward to the changes that will be madeto the Foreign Trade Policy next month and Iassure my support to measures that will betaken to boost exports of goods and services.[Nodal Ministries/Departments: Department ofCommerce]52. 84 Honble Members are aware that Government constituted the Financial Sector LegislativeReforms Commission (FSLRC) in 2011. I aminformed that the report will be presented nextmonth. It is our intention to examine therecommendations and act quickly anddecisively so that our financial sector standson sound legal foundations and remains wellregulated,efficient and internationallycompetitive. I propose to constitute a StandingCouncil of Experts in the Ministry of Finance toanalyse the international competitiveness of theIndian financial sector, periodically examine thetransaction costs of doing business in the Indianmarket, and provide inputs to Government fornecessary action.[Nodal Ministries/Departments: Department ofEconomic Affairs (CM Division)]53. 85 BankingOur public sector banks are well regulated, theymust also be adequately capitalised. Beforethe end of March, 2013, we shall provide`12,517 crore to infuse additional capital into


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13 public sector banks. In 2013-14, I proposeto provide a further amount of `14,000 crorefor capital infusion. We shall ensure that publicThe EFC considered the proposal for continuation ofSFURTI in the XII Plan on 3.1.2014The issue of arranging funds required from MultilateralDevelopment Banks will be taken up.Work in p rog res sNecessary amendments to the Foreign Trade Policy (FTP)have been announced.Act ion com ple t edThe constitution of Standing Council has been notified.Act ion com ple t ed

An amount of `12,517 crore has been infused in 13 publicsector banks as on 18.03.2013. The Cabinet has alreadyaccorded `in- principle approval for infusion of capital in Public Sector Banks in 2013-14.Act ion com ple t ed15S.No. Para Budget Announcement Status of ImplementationNo.Position reported on 7 th January, 2014sector banks always meet the Basel IIIregulations as they come into force in a phasedmanner.[Nodal Ministries/Departments: Department ofFinancial Services]54. 86 Financial inclusion has made rapid strides. Allscheduled commercial banks and all RRBs areon Core Banking Solution (CBS) and on theelectronic payment systems (NEFT andRTGS). We are working with RBI and NABARDto bring all other banks, including somecooperative banks, on CBS and e-paymentsystems by 31.12.2013. Public sector bankshave assured me that all their branches willhave an ATM in place by 31.3.2014.[Nodal Ministries/Departments: Department ofFinancial Services]55. 87 Women are at the head of many banks today,including two public sector banks, but there isno bank that exclusively serves women. Canwe have a bank that lends mostly to womenand women-run businesses, that supportswomen SHGs and womens livelihood, that employs predominantly women, and thataddresses gender related aspects ofempowerment and financial inclusion? I thinkwe can. I therefore propose to set up Indias first Womens Bank as a public sector bank and I shall provide `1,000 crore as initial capital. Ihope to obtain the necessary approvals andthe banking licence by October, 2013, and Iinvite all Honble Members to the inauguration of the bank shortly thereafter.[Nodal Ministries/Departments: Department ofFinancial Services,Department of Economic

Affairs (Budget Division)]56. 88 The Rural Housing Fund set up through the


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National Housing Bank is used to refinancelending institutions, including RRBs, thatextend loans for rural housing. So far, 400,000rural families have taken loans. In the lastBudget, we provided `4,000 crore to the Fund.In consultation with RBI, I propose to provide`6,000 crore to the Rural Housing Fund in2013-14.[Nodal Ministries/Departments: Department ofFinancial Services]57. 89 Similarly, it is proposed to start a fund for urbanhousing to mitigate the huge shortage ofhouses in urban areas. I propose to ask375 Unscheduled Commercial Banks (UCBs) out of a totalof 1594 have implemented Core Banking Solution (CBS).The remaining banks are at various stages of implementingof CBS. RBI has also issued instruction to cooperative bank/UCBs to migrate to CBS by March, 2014.So far 14,309

ATMs have been installed as on 31.12.2013, against thetarget of 34668 during 2013-14.Work in p rog res s

The Bharatiya Mahila Bank Limited has been incorporatedas a Banking Company under the Companies Act, 1956 forcommencement of Business. Government has released`1000 crore as equity capital of the Bank.Act ion com ple t edRBI vide letter dated 14.06.2013 has allocated `6000 croreto Rural Housing Fund to be operated by NHB.Act ion com ple t edRBI vide letter dated 14.06.2013 has allocated `2000 croreto Urban Housing Fund to be operated by NHB.Act ion com ple t ed16S.No. Para Budget Announcement Status of ImplementationNo.Position reported on 7 th January, 2014National Housing Bank to set up the UrbanHousing Fund and, in consultation with RBI, Ipropose to provide `2,000 crore to the Fundin 2013-14.[Nodal Ministry/Department: Department ofFinancial Services]58. 90 Insurance

A multi-pronged approach will be followed toincrease the penetration of insurance, both lifeand general, in the country. I have a numberof proposals that have been finalised inconsultation with the regulator, IRDA.

Insurance companies will be empoweredto open branches in Tier II cities and belowwithout prior approval of IRDA.

All towns of India with a population of10,000 or more will have an office of LICand an office of at least one public sectorgeneral insurance company. I propose toachieve this goal by 31.3.2014.

KYC of banks will be sufficient to acquireinsurance policies.


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Banks will be permitted to act as insurancebrokers so that the entire network of bankbranches will be utilized to increasepenetration.

Banking correspondents will be allowed tosell micro-insurance products.

Group insurance products will now beoffered to homogenous groups such asSHGs, domestic workers associations,anganwadi workers, teachers in schools,nurses in hospitals etc.

There are about 10,00,000 motor third partyclaims that are pending before Tribunals/Courts. Public sector general insurancecompanies will organise adalats to settlethe claims and give relief to the affectedpersons/families.Circular issued by IRDA.LIC have opened 1182 mini offices up to 31.12.2013, out ofthe total 1700 to be opened in the unrepresented towns.LIC has planned to open the remaining 518 offices byJanuary, 2014.The four public Sector General Insurance companies haveopened 1831 offices in that many towns, out of 1859unrepresented towns till 31.12.2013.IRDA has agreed to make KYC of Banks applicable toacquire Insurance policies.IRDA has approved IRDA (Licensing of Banks as insurancebrokers) Regulations, 2013. Banks, however, will have totake specific approval from RBI separately.IRDA has issued a circular dated 03.04.2013 on MicroInsurance Agents pending the review and notification of theproposed IRDA (Micro Insurance) (Modification) Regulation.

According to this circular most of the entities appointed asBCs, including companies registered under Companies Act,have been permitted by IRDA for appointment MI agents toMicro-insurance products.IRDA has issued a circular dated 20.6.2013Till December, 2013, 70592 cases have been settled out of140420 cases pending.The progress has been reviewed with the public sectorgeneral insurance companies and National Legal Service

Authority. In addition to the regular Lok Adalats throughwhich the above progress has been made, Mega Lok17S.No. Para Budget Announcement Status of ImplementationNo.Position reported on 7 th January, 2014[Nodal Ministries/Departments: Department ofFinancial Services]59. 91 The Insurance Laws (Amendment) Bill and thePFRDA Bill are before this House. I sincerelyhope that Government and the Opposition canarrive at a consensus and pass the two Bills inthis session.[Nodal Ministries/Departments: Ministry of Law& Justice,Department of Financial Services]60. 92 The Rashtriya Swasthiya Bima Yojana covers


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34 million families below the poverty line. Itwill now be extended to other categories suchas rickshaw, auto-rickshaw and taxi drivers,sanitation workers, rag pickers and mineworkers.[Nodal Ministries/Departments: Ministry ofLabour & Employment]61. 93 A comprehensive and integrated social securitypackage for the unorganised sector is ameasure that will benefit the poorest and mostvulnerable sections of society. The packageshould include life-cum-disability cover, healthcover, maternity assistance and pensionbenefits. The present schemes such as AABY,JSBY, RSBY, JSY and IGMSY are run bydifferent ministries and departments. I proposeto facilitate convergence among the variousstakeholder ministries/departments so that wecan evolve a comprehensive social securitypackage.[Nodal Ministries/Departments: Department ofFinancial Services]62. 94 Capital MarketI believe that Indias capital market is among the best regulated markets. This year is SEBIs silver jubilee year and I offer the regulator ourcongratulations. A proposal to amend the SEBI

Act to strengthen the regulator is underconsideration.[Nodal Ministries/Departments: Department ofEconomic Affairs (CM Division)]

Adalats were held on 23 rd November, 2013 and 30 thNovember, 2013 across all the States.In the Mega Lok Adalats, the four Public Sector GroupInsurance Companies had referred 62750 cases out ofwhich 40,310 cases were settled amounting to 64.4 per cent.Act ion pa r t ia l ly com ple t ed

A proposal relating to Official amendments to theInsurance Law (Amendments) Bill 2008 wasapproved by the Cabinet on 04.10.2012. The officialamendments are proposed to be introduced in theBudget session of the Parliament.

The PFRDA bill has been passed by the Parliamentin September 2013.Act ion pa r t ia l ly com ple t edThe Cabinet on 4.6.2013 has approved a proposal forextension of coverage of Rashtriya Swasthya Bima Yojana(RSBY) to Sanitation Workers, Rickshaw Pullers, Rag

Pickers, Mine Workers and Auto/Taxi Drivers.Act ion com ple t ed A note for consideration of Committee of Secretaries (CoS)is being finalized on the basis of report of Institute forFinancial Management and Research (IFMR).Work in p rog res s

An Ordinance was promulgated on July 18, 2013 to amendSecurities and Exchange Board of India (SEBI) Act, andrelated Acts for powers to the capital markets regulator.The Bill has been introduced in Lok Sabha on 12.08.2013.


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The present version of the Bill is before the StandingCommittee of Finance for their report to the Parliament.Work in p rog res s18S.No. Para Budget Announcement Status of ImplementationNo.Position reported on 7 th January, 201463. 95 I have a number of proposals relating to thecapital market that have been finalised inconsultation with SEBI:

There are many categories of foreignportfolio investors such as FIIs, subaccounts,QFIs etc. and there are alsodifferent avenues and procedures for them.Designated depository participants,authorised by SEBI, will now be free toregister different classes of portfolioinvestors, subject to compliance with KYCguidelines.

SEBI will simplify the procedures and

prescribe uniform registration and othernorms for entry of foreign portfolioinvestors. SEBI will converge the differentKYC norms and adopt a risk-basedapproach to KYC to make it easier forforeign investors such as central banks,sovereign wealth funds, university funds,pension funds etc. to invest in India.

In order to remove the ambiguity thatprevails on what is Foreign DirectInvestment (FDI) and what is ForeignInstitutional Investment (FII), I propose tofollow the international practice and laydown a broad principle that, where aninvestor has a stake of 10 percent or lessin a company, it will be treated as FII and,where an investor has a stake of more than10 percent, it will be treated as FDI. Acommittee will be constituted to examinethe application of the principle and to workout the details expeditiously.

FIIs will be allowed to participate in theexchange traded currency derivativesegment to the extent of their Indian rupeeexposure in India.

FIIs will also be permitted to use theirinvestment in corporate bonds and

Government securities as collateral to meettheir margin requirements. Angel investors bring both experience and

capital to new ventures. SEBI will prescriberequirements for angel investor pools bywhich they can be recognised as CategoryI AIF venture capital funds.

Small and medium enterprises, includingstart-up companies, will be permitted to liston the SME exchange without being


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required to make an initial public offerReport of the K.M. Chandrasekhar Committee wassubmitted on June 12, 2013. Follow up action is being takenon the report of K.M.Chandrasekhar Committee.Necessary amendments to PMLA rules to implement riskbased KYC are being finalized.

A draft report of the Committee comprising RBI, DIPP,SEBI, DoR under the Chairmanship of Secretary (EA) hasbeen circulated for comments.Keeping in view the volatility in the forex market, it has beendecided to keep the proposal in abeyance till the value ofrupee stabilizes.RBI and SEBI have issued the necessary circulars.

Amendments to SEBI (Alternative Investment Funds)Regulations, 2012 had been given effect on 25.06.2013.Issued the SEBI (Listing of Specified Securities onInstitutional Trading Platform) Regulations, 2013 on08.10.2013 and circular on 24.10.2013.19S.No. Para Budget Announcement Status of ImplementationNo.Position reported on 7 th January, 2014(IPO), but the issue will be restricted toinformed investors. This will be in additionto the existing SME platform in which listingcan be done through an IPO and with widerinvestor participation.

With the object of developing the debtmarket, stock exchanges will be allowedto introduce a dedicated debt segment onthe exchange. Banks and primary dealerswill be the proprietary trading members. Inorder to create a complete market,insurance companies, provident funds andpension funds will be permitted to tradedirectly in the debt segment with theapproval of the sectoral regulator.

Mutual fund distributors will be allowed tobecome members in the Mutual Fundsegment of stock exchanges so that theycan leverage the stock exchange networkto improve their reach and distribution.

The list of eligible securities in whichPension Funds and Provident Funds mayinvest will be enlarged to include exchangetraded funds, debt mutual funds and assetbacked securities.[Nodal Ministries/Departments: Department ofEconomic Affairs,Department of IndustrialPolicy & Promotion,Department of FinancialServices]64. 96 VI. ENVIRONMENTIndia tosses out several thousand tonnes ofgarbage each day. We will evolve a scheme toencourage cities and municipalities to take upwaste-to-energy projects in PPP mode whichwould be neutral to different technologies. Ipropose to support municipalities that will


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implement waste-to-energy projects throughdifferent instruments such as viability gapfunding, repayable grant and low cost capital.[Nodal Ministry/Department: Ministry of UrbanDevelopment]65. 97 Clean and Green energy is a priority of theGovernment. However, despite costadvantages in labour, land and construction,the consumer pays a high price for renewableenergy. One of the reasons is high cost offinance. In order to provide low cost finance,Government will provide low interest bearingfunds from the National Clean Energy FundThe Securities and Exchange Board of India (Stock-Brokersand Sub-Brokers) Regulation, 1992 has been amended bySEBI for the purpose of introducing debt segment on stockexchanges to permit Banks, primary dealers, insurancecompanies, Pension and provident funds to be memberssubject to approval by respective regulations on5.4.2013.The draft amendments to Securities Contracts(Regulations) Rules, 1957 is being sent for notification inthe Gazette after legal vetting.SEBI Board (Mutual Funds) (Third Amendment)Regulations, 2013 has been amended on 19.08.2013.The Report of the Expert Group on review of the investmentpattern for provident funds etc. under the Chairmanship ofShri G.N.Bajpai is expected soon. On receipt of the Report,the proposal to revise the investment pattern for providentfunds etc. would be finalized.Act ion pa r t ia l ly com ple t ed

A draft scheme has been prepared by the Ministry of UrbanDevelopment and discussions were held to identify pilotprojects in Mumbai and Kerala.Work in p rog res s

A scheme for accessing low cost funds from NCEF tooperate a refinance scheme through IREDA has beenformulated. Necessary approvals are being obtained forinitiating the scheme.Act ion com ple t ed20S.No. Para Budget Announcement Status of ImplementationNo.Position reported on 7 th January, 2014(NCEF) to IREDA to on-lend to viablerenewable energy projects. The scheme willhave a life span of five years.[Nodal Ministries/Departments: Ministry of New& Renewable Energy]66. 98 The non-conventional wind energy sectordeserves incentives. Hence, I propose toreintroduce generation -based incentive for wind energy projects and provide `800 crore tothe Ministry of Non Renewable Energy for thepurpose.[Nodal Ministries/Departments: Ministry of New& Renewable Energy]67. 99 VII. OTHER PROPOSALSBackwardRegions Grant FundThe Backward Regions Grant Fund (BRGF)


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is a vital source of gap funding. I propose toallocate `11,500 crore in 2013-14 as well asanother sum of `1,000 crore for LWE affecteddistricts. BRGF will include a State componentfor Bihar, the Bundelkand region, WestBengal, the KBK districts of Odisha and the82 districts under the Integrated Action Plan.The present criteria for determiningbackwardness are based on terrain, densityof population and length of internationalborders. It may be more relevant to use ameasure like the distance of the State fromthe national average under criteria such as percapita income, literacy and other humandevelopment indicators. I propose to evolvenew criteria and reflect them in future planningand devolution of funds.[Nodal Ministries/Departments: Ministry ofPanchayati Raj, Planning Commission,Department of Expenditure]68. 100 Skill DevelopmentHonble Members will recall that in 2008 -09 Ihad proposed the establishment of the NationalSkill Development Corporation. TheCorporation has since been set up and hasdone good work, but there is a long way to go.We have set an ambitious target of skilling 50million people in the 12th Plan period, including9 million in 2013-14. We have to pull out allstops to achieve this objective. Funds will bereleased by the National Rural LivelihoodMission and the National Urban LivelihoodMission to be spent on skill developmentactivities. 5 percent of the Border AreaDevelopment Programme Fund, 10 percent ofThe CCEA in its meeting held on 1.8.2013 approved thecontinuation of Generation Based Incentive Scheme in thewind power sector. The scheme has been launched on04.09.2013.Act ion com ple t ed

A committee set up to evolve a composite developmentindex of States and to recommend criteria has submittedits report. The recommendations are being examined byPlanning Commission.Work in p rog res sThe total of appx. 3.17 lakh candidates have so far beentrained under various schemes. An amount of `396 crorehave also been released.

All the states/ UTs have been informed to utilize at least10% of Special Central Assistance to SC Sub-Plan for SkillDevelopment Programme. A total of appx. 23,000candidates have so far been provided training for skillupgradation under different schemes.Out of the sanctioned amount of `111.45 crore for SpecialCentral Assistance to tribal sub-plants for States, `94.55crore have been released for skill development activitiesbenefiting more than 59,465 persons.21S.No. Para Budget Announcement Status of Implementation


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No.Position reported on 7 th January, 2014the Special Central Assistance to theScheduled Caste sub plan and the Tribal subplan, and some other funds will also be usedfor skill development.[Nodal Ministries/Departments: Department ofSocial Justice & Empowerment,Ministry ofTribal Affairs,Ministry of Housing and UrbanPoverty Alleviation, PlanningCommission,Department of Economic

Affairs,Department of Rural Development]69. 103 While we extol the virtues of science andtechnology (S&T), I think we do not pay enoughattention to science and technology for thecommon man. With the help of the Ministry ofScience and Technology and the PrincipalScientific Adviser to the Government, I haveidentified a few amazing S&T innovations. Ipropose to set apart `200 crore to fundorganisations that will scale up and make theseproducts available to the people. I propose toask the National Innovation Council to formulatea scheme for the management and applicationof the fund.[Nodal Ministries/Departments: Ministry ofScience & Technology, Department ofEconomic Affairs]70. 104 Institutions of ExcellenceContinuing the tradition of supportinginstitutions of excellence, I propose to make agrant of `100 crore each to:

Aligarh Muslim University, Aligarh campusBanaras Hindu University, Varanasi

Tata Institute of Social Sciences, Guwahaticampus

Indian National Trust for Art and CulturalHeritage (INTACH)[Nodal Ministries/Departments: Department ofHigher Education,Ministry of Culture]71. 105 SportsSports of all kind deserve our support. We havemany sportsmen and sportswomen but fewcoaches. Hence, I propose to set up theNational Institute of Sports Coaching at Patialaat a cost of `250 crore over a period of threeyears.[Nodal Ministries/Departments: Department ofEconomic Affairs (ABC Division),Departmentof Sports]

All the bordering States have been mandated to utilize atleast 5% of the allocation under the Border AreaDevelopment Programme (BADP) on skill development.48 percent of `950 crore provided under Swarna JayantiShahri Rozgar Yojana will be used for skill training for urbanpoor. CCEA has approved the National Urban LivelihoodsMission (NULM) on 03.09.2013 with a Budgetary provisionof `6404.9 crore under 12 th Five Year Plan for replacing


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External Affairs]76. 110 Central SchemesGovernment is concerned about theproliferation of Centrally Sponsored Schemes(CSS) and Additional Central Assistance (ACA)schemes. They were 173 in number at the endof the 11th Plan. I am glad to announce thatthe schemes will be restructured into 70schemes. Each scheme will be reviewed oncein two years. Central funds for the schemeswill be given to the States as part of centralplan ass istance. Honble Members will be glad to know that, in 2013-14, I expect to transfer

An Independent External Monitor (IEM) to ensure probityand transparency in the entire tender process has beenappointed as per CVC guidelines. Further approval of CVCis awaited for appointment of another IEM for this purpose.Suggestions recommended by IEM are being carried out.RFP is yet to be floated.Work in P rogres s`200 crore have been provided under the scheme.Act ion com ple t edM/s Infosys Ltd. has been engaged for the FinancialServices System Integrator for implementing Core BankingSolutions and for installing ATM. The project hascommenced on 28.09.2013 and the roll out has started from3 Post Offices in Tamil Nadu. The Core Banking solutionwill be implemented during FY 2014-15.Work in p rog res s

A sum of US$ 19500 has been sanctioned by theGovernment for the phase-I of the project.Act ion com ple t edThe proposal of re-structuring of Centrally SponsoredSchemes (CSSs) to improve their efficiency has beenapproved by the Planning Commission. The approval hasbeen conveyed to all Central Ministries and StateGovernments.Act ion com ple t ed23S.No. Para Budget Announcement Status of ImplementationNo.Position reported on 7 th January, 2014resources to the tune of `5,87,082 crore to theStates and UTs under share of taxes, non-plangrants and loans, and central assistance.[Nodal Ministries/Departments: PlanningCommission,Department ofExpenditure,Department of Economic Affairs]77. 112 To the women of India: We have a collectiveresponsibility to ensure the dignity and safetyof women. Recent incidents have cast a long,dark shadow on our liberal and progressivecredentials. As more women enter publicspaces for education or work or access toservices or leisure there are more reports ofviolence against them. We stand in solidaritywith our girl children and women. And wepledge to do everything possible to empowerthem and to keep them safe and secure. A


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number of initiatives are under way and manymore will be taken by Government as well asnon-government organisations. These deserveour support. As an earnest of our commitmentto these objectives, I propose to set up a fund

let us call it the Nirbhaya Fund andGovernment will contribute `1,000 crore.Ministry of Women and Child Development andother ministries concerned will be requestedto work out the details of the structure, scopeand application of the fund.[Nodal Ministries/Departments: Ministry ofHome Affairs,Ministry of Women & ChildDevelopment]78. 113 To the youth of India: A large number of youthmust be motivated to voluntarily join skilldevelopment programmes. I propose to askthe National Skill Development Corporation toset the curriculum and standards for training indifferent skills. Any institution or body may offertraining courses. At the end of the training, thecandidate will be required to take a testconducted by authorised certification bodies.Upon passing the test, the candidate will begiven a certificate as well as a monetary rewardof an average of `10,000 per candidate. Skilltrainedyouth will give an enormous boost toemployability and productivity. On theassumption that 10,00,000 youth can bemotivated, I propose to set apart `1,000 crorefor this ambitious scheme. I hope that this willbe the trigger to extend skill development to allthe youth of the country.[Nodal Ministries/Departments: Department ofEconomic Affairs]Schemes for empowering women and to keep them safeand secure are being finalized. SHUBH with aim of preventing violence against women has been formulatedwith ` 486.05 crore for funding from the Nirbhaya fund to bepart of regular Schemes of Ministry of Women and ChildDevelopment. Ministry of Home Affairs (MHA) is alsofinalizing a scheme from the fund amounting to ` 321.66crore from the Nirbhaya fund. Work in p rog res sNational Skill Certification and Monetary Reward Schemeshave been launched with budgetary provision of `1020 crore.to meet the targeted skilling of 1 lakh youth.Act ion com ple t ed24S.No. Para Budget Announcement Status of ImplementationNo.Position reported on 7 th January, 201479. 114 To the poor of India: The Direct Benefit Transferscheme has captured the imagination of thepeople, especially the poor. The Governmentis the government of the people. The money isthe money belonging to the people. When wesay Aapka paisa aapke haath, why should anyone oppose it? We have made a modest


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and cautious beginning on the 1st of January,2013. Nearly 11 lakh beneficiaries havereceived the benefit directly into their bankaccounts. All around us, we see the smiles onthe faces of the dalit girls and the tribal boyswho have received their scholarships. We seethe happiness on the faces of the pregnantwomen who are assured that the Governmentcares for the mother and the child before andafter child birth. We are redoubling our effortsto ensure that the digitized beneficiary lists areavailable; that a bank account is opened foreach beneficiary; and that the bank account isseeded with Aadhaar in due course. I assurethe House and the people of India that the DBTscheme will be rolled out throughout the countryduring the term of the UPA Government.[Nodal Ministries/Departments:PlanningCommission,Department of Expenditure]80. 120 When I took over in August, 2012, I made astatement that clarity in tax laws, a stable tax regime, a non-adversarial tax administration,a fair mechanism for dispute resolution, andan independent judiciary will provide greatassurance. That statement is th e underlyingtheme of my tax proposals, both on the directtaxes side and on the indirect taxes side.[Nodal Ministry/Department: Department ofRevenue]81. 121 An emerging economy must have a tax systemthat reflects best global practices. I propose toset up a Tax Administration ReformCommission to review the application of taxpolicies and tax laws and submit periodicreports that can be implemented to strengthenthe capacity of our tax system.[Nodal Ministry/Department: Department ofRevenue]82. 125 The rates of personal income tax have survivedfour Finance Ministers and four Governments.The current slabs were introduced only lastyear. Hence, I am afraid, there is no case torevise either the slabs or the rates. Besides,even a moderate increase in the level ofthreshold exemption will mean that hundredsThe Direct Benefit Transfer (DBT) scheme has beenoperationalized in 121 identified districts for 27 identifiedschemes.Work in p rog res s

Notifications and Circulars have been issued.Act ion com ple t edSetting up of Tax Administration Reform Commission toreview the application of tax policies and tax laws has beennotified.Act ion com ple t edThe provisions of the Income-tax Act, 1961, have beenamended by the Finance Act, 2013.Act ion com ple t ed25


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S.No. Para Budget Announcement Status of ImplementationNo.Position reported on 7 th January, 2014of thousands of tax payers will go out of the taxnet and the tax base will be severely eroded.Nevertheless, I am inclined to give some reliefto the tax payers in the first bracket of `2 lakhto `5 lakh. Assuming an inflation rate of 10percent and a notional rise in the thresholdexemption from `2,00,000 to `2,20,000, Ipropose to provide a tax credit of `2,000 toevery person who has a total income upto `5lakh. 1.8 crore tax payers are expected tobenefit to the value of `3,600 crore.[Nodal Ministry/Department: Department ofRevenue]83. 126 Fiscal consolidation cannot be effected only bycutting expenditure. Wherever possible,revenues must also be augmented. When Ineed to raise resources, who can I go to exceptthose who are relatively well placed in society?There are 42,800 persons let me repeat, only42,800 persons who admitted to a taxableincome exceeding `1 crore per year. I proposeto impose a surcharge of 10 percent on personswhose taxable income exceeds `1 crore peryear. This will apply to individuals, HUFs, firmsand entities with similar tax status.[Nodal Ministry/Department: Department ofRevenue]84. 127 I also propose to increase the surcharge from5 percent to 10 percent on domestic companieswhose taxable income exceeds `10 crore peryear. In the case of foreign companies, whopay the higher rate of corporate tax, thesurcharge will increase from 2 percent to 5percent.[Nodal Ministry/Department: Department ofRevenue85. 128 In all other cases, such as dividend distributiontax or tax on distributed income, I propose toincrease the current surcharge of 5 percent to10 percent.[Nodal Ministry/Department: Department ofRevenue86. 132 In part A of my speech, I had referred to the taxbenefit to the first-home buyer who takes a loanfor an amount not exceeding `25,00,000. Ipropose to allow such home buyers anadditional deduction of interest of `100,000 tobe claimed in AY 2014-15. If the limit is notexhausted, the balance may be claimed in AY2015-16. This deduction will be over and aboveThe provisions of the Income-tax Act, 1961, have beenamended by the Finance Act, 2013.Act ion com ple t edThe provisions of the Income-tax Act, 1961, have beenamended by the Finance Act, 2013.Act ion com ple t ed


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The provisions of the Income-tax Act, 1961, have beenamended by the Finance Act, 2013.Act ion com ple t edThe provisions of the Income-tax Act, 1961, have beenamended by the Finance Act, 2013.Act ion com ple t ed26S.No. Para Budget Announcement Status of ImplementationNo.Position reported on 7 th January, 2014The provisions of the Income-tax Act, 1961, have beenamended by the Finance Act, 2013.Act ion com ple t edThe provisions of the Income-tax Act, 1961, have beenamended by the Finance Act, 2013.Act ion com ple t edThe provisions of the Income-tax Act, 1961, have beenamended by the Finance Act, 2013.Act ion com ple t edThe provisions of the Income-tax Act, 1961, have beenamended by the Finance Act, 2013.Act ion com ple t edThe provisions of the Income-tax Act, 1961, have beenamended by the Finance Act, 2013.Act ion com ple t edthe deduction of `150,000 allowed for selfoccupiedproperties under section 24 of theIncome-tax Act.[Nodal Ministry/Department: Department ofRevenue]87. 133 I propose to relax the eligibility conditions oflife insurance policies for persons suffering fromdisability or certain ailments by increasing thepermissible premium rate from 10 percent to15 percent of the sum assured. This relaxationshall be available in respect of policies issuedon or after 1.4.2013.[Nodal Ministry/Department: Department ofRevenue]88. 134 Contributions made to the Central GovernmentHealth Scheme are eligible for deduction undersection 80D of the Income-tax Act. I proposeto extend the same benefit to similar schemesof the Central Government and StateGovernments.[Nodal Ministry/Department: Department ofRevenue]89. 135 Donations made to the National Childrens Fund will now be eligible for 100 percentdeduction.[Nodal Ministries/Departments: Department ofRevenue,Ministry of Women & ChildDevelopment]90. 136 No large economy can become truly developedwithout a robust manufacturing sector. Hence,as stated in part A of my speech, I propose toprovide an investment allowance at the rate of15 percent to a manufacturing company thatinvests more than `100 crore in plant and


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machinery during the period 1.4.2013 to31.3.2015.[Nodal Ministry/Department: Department ofRevenue]91. 137 I propose to extend the eligible date for projects in the power sector to avail of thebenefit under section 80-IA of the Income-tax

Act, from 31.3.2013 to 31.3.2014.[Nodal Ministry/Department: Department ofRevenue]27S.No. Para Budget Announcement Status of ImplementationNo.Position reported on 7 th January, 201492. 138 In order to encourage repatriation of funds fromoverseas companies, I propose to continue forone more year the concessional rate of tax of15 percent on dividend received by an Indiancompany from its foreign subsidiary. Further,the Indian company shall not be liable to paydividend distribution tax on the distribution toits shareholders of that portion of the incomereceived from its foreign subsidiary.[Nodal Ministries/Departments: Department ofRevenue]93. 139 With a view to attract investment in long terminfrastructure bonds in foreign currency, the rateof tax on interest paid to non-resident investorswas reduced last year from 20 percent to 5percent. I propose to extend the same benefitto investment made through a designated bankaccount in rupee-denominated long terminfrastructure bonds.[Nodal Ministries/Departments: Department ofRevenue,Department of Economic Affairs]94. 140 In order to facilitate financial institutions tosecuritise their assets through a specialpurpose vehicle, I propose to exempt theSecuritisation Trust from income tax. Tax shallbe levied only at the time of distribution ofincome by the Securitisation Trust at the rateof 30 percent in the case of companies and atthe rate of 25 percent in the case of an individualor HUF. No further tax will be levied on theincome received by the investors from theSecuritisation Trust.[Nodal Ministry/Department: Department ofRevenue]95. 141 Investor Protection Fund set up by a depositoryfor the protection of interest of beneficial ownerswill be exempt from income tax.[Nodal Ministries/Departments: Department ofRevenue,Department of Economic Affairs]96. 142 I propose to provide parity in taxation betweenan IDF-Mutual Fund that distributes income andan IDF-NBFC that pays interest, when thepayment is made to a non-resident. The rateof tax on such distributed income or interestwill be 5 percent.


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[Nodal Ministries/Departments: Department ofRevenue,Department of Economic Affairs]The provisions of the Income-tax Act, 1961, have beenamended by the Finance Act, 2013.Act ion com ple t edThe provisions of the Income-tax Act, 1961, have beenamended by the Finance Act, 2013.Act ion com ple t edThe provisions of the Income-tax Act, 1961, have beenamended by the Finance Act, 2013.Act ion com ple t edThe provisions of the Income-tax Act, 1961, have beenamended by the Finance Act, 2013.Act ion com ple t edThe provisions of the Income-tax Act, 1961, have beenamended by the Finance Act, 2013.Act ion com ple t ed28S.No. Para Budget Announcement Status of ImplementationNo.Position reported on 7 th January, 201497. 143 Venture Capital Funds have been allowed passthrough status under the Income-tax Act. Therelevant regulations of SEBI have beenreplaced by Alternative Investment FundRegulations. Hence, I propose to extend,subject to certain conditions, pass throughstatus to category I Alternative InvestmentFunds registered with SEBI as venture capitalfunds. Angel Investors who are recognised ascategory I AIF venture capital funds will alsoget pass through status.[Nodal Ministries/Departments:Department ofRevenue,Department of Economic Affairs]98. 144 I propose to modify the Rajiv Gandhi EquitySaving Scheme, details of which I hadmentioned in part A of my speech.[Nodal Ministries/Departments: Department ofRevenue,Department of Economic Affairs]99. 145 Transactions in immovable properties areusually undervalued and underreported. Onehalfof the transactions do not carry the PAN ofthe parties concerned. With a view to improvethe reporting of such transactions and thetaxation of capital gains, I propose to apply TDSat the rate of one percent on the value of thetransfer of immovable property where theconsideration exceeds `50 lakhs. However,agricultural land will be exempt.[Nodal Ministry/Department: Department ofRevenue]100. 146 Some tax avoidance arrangements have cometo notice, and I propose to plug the loopholes.Some unlisted companies have avoideddividend distribution tax by arrangementsinvolving buyback of shares. I propose to levya final withholding tax at the rate of 20 percenton profits distributed by unlisted companies toshareholders through buyback of shares.


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[Nodal Ministry/Department: Department ofRevenue]101. 147 Another case is the distribution of profits by asubsidiary to a foreign parent company in theform of royalty. Besides, the rate of tax onroyalty in the Income-tax Act is lower than therates provided in a number of Double Tax

Avoidance Agreements. This is an anomaly thatmust be corrected. Hence, I propose toincrease the rate of tax on payments by way ofroyalty and fees for technical services to nonresidentsfrom 10 percent to 25 percent.The provisions of the Income-tax Act, 1961, have beenamended by the Finance Act, 2013.Act ion com ple t edThe provisions of the Income Tax Act,1961 have beenamended by the Finance Act, 2013.Act ion com ple t edThe provisions of the Income-tax Act, 1961, have beenamended by the Finance Act, 2013.Act ion com ple t ed

The provisions of the Income-tax Act, 1961, have beenamended by the Finance Act, 2013.Act ion com ple t edThe provisions of the Income-tax Act, 1961, have beenamended by the Finance Act, 2013.Act ion com ple t ed29S.No. Para Budget Announcement Status of ImplementationNo.Position reported on 7 th January, 2014However, the applicable rate will be the rate oftax stipulated in the DTAA.[Nodal Ministry/Department: Department ofRevenue]102. 148 Securities Transaction Tax (STT) has astabilizing effect on transactions, although itadds to the transaction cost. Taking note ofthe changes and shifts in the market, I proposeto make the following reductions in the rates oftax:Equity futures: from 0.017 to 0.01percentMF/ETF redemptions at fund counters:from 0.25 to 0.001 percentMF/ETF purchase/sale on exchanges: from 0.1 to 0.001 percent,only on the seller.[Nodal Ministries/Departments: Department ofRevenue, Department of Economic Affairs]103. 149 There is no distinction between derivativetrading in the securities market and derivativetrading in the commodities market, only theunderlying asset is different. It is time tointroduce Commodities Transaction Tax (CTT)in a limited way. Hence, I propose to levy CTTon non-agricultural commodities futurescontracts at the same rate as on equity futures,that is at 0.01 percent of the price of the trade.Trading in commodity derivatives will not beconsidered as a ` speculative transaction and CTT shall be allowed as deduction if the income


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from such transaction forms part of businessincome. As I said, agricultural commodities willbe exempt.[Nodal Ministries/Departments: Department ofRevenue, Department of Economic Affairs]104. 150 Honble Members are a ware that the Finance

Act, 2012 introduced the General Anti Avoidance Rules, for short, GAAR. A numberof representations were received against thenew provisions. An expert committee wasconstituted to consult stakeholders and finalisethe GAAR guidelines. After carefulconsideration of the report, Governmentannounced certain decisions on 14.1.2013which were widely welcomed. I propose toincorporate those decisions in the Income-tax

Act. The modified provisions preserve thebasic thrust and purpose of GAAR.Impermissible tax avoidance arrangementswill be subjected to tax after a determinationis made through a well laid out procedureinvolving an assessing officer and anThe provisions of the Income-tax Act, 1961, have beenamended by the Finance Act, 2013.Act ion com ple t edStatutory amendments in the Income-tax Act, 1961 havebeen carried vide Finance Act, 2013, which also providesfor levy of CTT.Act ion com ple t edThe provisions of the Income-tax Act, 1961, have beenamended by the Finance Act, 2013.Act ion com ple t ed30S.No. Para Budget Announcement Status of ImplementationNo.Position reported on 7 th January, 2014

Approving Panel headed by a Judge. Ipropose to bring the modified provisions intoeffect from 1.4.2016.[Nodal Ministry/Department:Department ofRevenue]105. 151 The Rangachary Committee was appointed tolook into tax matters relating to DevelopmentCentres & IT sector and Safe Harbour rulesfor a number of sectors. We have issued acircular covering IT sector exports and willshortly issue a circular covering DevelopmentCentres. Rules on Safe Harbour will be issuedafter examining the reports of the Committee,the last of which is expected by 31.3.2013.[Nodal Ministry/Department: Department ofRevenue]106. 152 The fifth Large Tax payer Unit will be openedat Kolkata shortly.[Nodal Ministry/Department: Department ofRevenue]107. 153 I have also taken a number of administrativemeasures in the last few months. I propose toexpand the scope of annual information


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returns, extend e-payment facility through morebanks, extend the refund banker system torefunds of more than `50,000, and make efilingmandatory for more categories ofassessees. The Income-tax department israpidly moving towards technology-basedprocessing as would be evident from theCentral Processing Cell set up at Bengaluruand the Central Processing Cell-TDSinaugurated a few days ago at Vaishali,Ghaziabad.[Nodal Ministry/Department: Department ofRevenue]108. 154 The Direct Taxes Code (DTC) is work inprogress. The DTC is not intended to be anamended version of the Income-tax Act, 1961but a new code based on the best internationalpractices that will be compatible with the needsof a fast developing economy. The StandingCommittee on Finance has submitted its reportand we attach great weight to itsrecommendations. My team in the Ministry ofSafe harbor Rules have been notified vide notification no.73/20139 [S.O. 2810 (E)] dated 18.09.2013.Act ion com ple t edThe fifth Large Tax payer Unit has been operationalized atKolkata w.e.f. 28.10.2013.Act ion com ple t edThe Finance Act, 2013 amended the Wealth Tax Act, 1957for incorporating enabling provision for e-filing of WealthTax return.Vide notification No.34 dated 01.05.2013, e-filing has beenmade mandatory for Income tax assesses having incomeof more than five lakh rupees.Act ion com ple t ed

The recommendations of Standing Committee on Financeon the DTC have been examined by the Government. Thedraft DTC Bill, 2013 has been placed before the Cabinet forits approval. The Bill will be moved to the Parliament afterthe approval of the Cabinet.Work in p rog res s31S.No. Para Budget Announcement Status of ImplementationNo.Position reported on 7 th January, 2014Finance is examining the recommendationsand I intend to work with the StandingCommittee and its Chairman in order to finalisethe official amendments. I shall endeavour tobring the Bill back to this House before the endof the Budget Session.[Nodal Ministry/Department: Department ofRevenue]109. 158 To encourage manufacture of environmentfriendlyvehicles, I propose to extend the periodof concession now available for specified partsof electric and hybrid vehicles upto 31.3.2015.[Nodal Ministry/Department: Department ofRevenue]


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110. 159 Leather and leather goods is a thrust sector forexports. I propose to reduce the duty onspecified machinery for manufacture of leatherand leather goods, including footwear, from 7.5percent to 5 percent.[Nodal Ministry/Department:Department ofRevenue]111. 160 To encourage exports, I propose to reduce theduty on pre-forms of precious and semipreciousstones from 10 percent to 2 percent.[Nodal Ministry/Department: Department ofRevenue]112. 161 Export duty on de-oiled rice bran oil cake hasmade our exports uncompetitive. Hence, Ipropose to withdraw the said duty.[Nodal Ministry/Department: Department ofRevenue]113. 162 Prices of unprocessed ilmenite have gone upseveral fold in the export market. Consideringthe need to conserve our natural resources, Ipropose to impose a duty of 10 percent onexport of unprocessed ilmenite and 5 percenton export of upgraded ilmenite.[Nodal Ministry/Department: Department ofRevenue]114. 163 The aircraft manufacture, repair and overhaul(MRO) industry is at a nascent stage.Clauses (g) and (h) of the Proviso to notification No.12/2012-Customs, have been amended suitably to implement thisdecision. The period of concession has been extended upto 31.03.2015.Act ion com ple t edDuty on specified machinery for manufacture of leather andleather goods, including footwear has been reduced from7.5 percent to 5 percent vide S. No 390 (List 29) ofnotification No. 12/2012-Cus. dated 17.03.2012 as amendedvide notification No.12/2013-Customs dated 01.03.2013.Act ion com ple t edThe duty on pre-forms of precious and semi-precious stoneshas been reduced from 10 percent to 2 percent vide S. No.312A of Notification No. 12/2012-Customs dated 17-03-2012as inserted vide notification No.12/2013 dated 01.03.2013.Act ion com ple t edExport duty on de-oiled rice bran oil cake has beenwithdrawn vide S. No. 12 of notification No. 27/2011-Customs, dated 1st March 2011 vide notification No.15/2013-Customs, dated 01.03.2013.Act ion com ple t edDuty of 10 percent on export of unprocessed ilmenite and 5per cent on export of upgraded ilmenite has been imposedby inserting S.No.24C and 24D in the Notification videNotification No. 27/2011-Customs dated the 1st March 2013vide notification No.15/2013-Customs, dated 01.03.2013.Act ion com ple t edS. No. 448 of notification No.12/2012-Customs (Condition73) dated 17.03.2012 has been amended suitably vide the32S.No. Para Budget Announcement Status of ImplementationNo.


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Position reported on 7 th January, 2014Encouraging the MRO sector will generateemployment besides other benefits. Hence, Ipropose to provide certain concessions to theMRO industry, details of which are in the budgetdocuments.[Nodal Ministry/Department:Department ofRevenue]115. 164 To encourage domestic production of set topboxes as well as value addition, I propose toincrease the duty from 5 percent to 10 percent.[Nodal Ministry/Department: Department ofRevenue]116. 165 In order to give a measure of protection todomestic sericulture, I propose to increase theduty on raw silk from 5 percent to 15 percent.[Nodal Ministry/Department: Department ofRevenue]117. 166 Steam coal is exempt from customs duty butattracts a concessional CVD of one percent.Bituminous coal attracts a duty of 5 percent andCVD of 6 percent. Since both kinds of coal areused in thermal power stations, there is rampantmisclassification. I propose to equalise theduties on both kinds of coal and levy 2 percentcustoms duty and 2 percent CVD.[Nodal Ministry/Department:Department ofRevenue]118. 167 There is an affluent class in India that consumesimported luxury goods such as high end motorvehicles, motorcycles, yachts and similarvessels. I am sure they will not mind paying alittle more. Hence, I propose to increase theduty on such motor vehicles from 75 percentto 100 percent; on motorcycles with enginecapacity of 800cc or more from 60 percent to75 percent; and on yachts and similar vesselsfrom 10 percent to 25 percent.[Nodal Ministry/Department: Department ofRevenue]119. 168 The baggage rules permitting eligiblepassengers to bring jewellery was lastamended in 1991. Gold prices have risen since,and passengers have complained ofharrasment. Hence, I propose to raise the dutynotificationNo.12/2013-Customs dated 01.03.2013 toprovide the concessions to the MRO industry.Act ion com ple t edThe duty on set top boxes has been increased from 5 percent to 10 per cent by amending S.No. No. 411 of thenotification No.12/2012-Customs dated 17.03.2012 videnotification No.12/2013-Customs dated 01.03.2013.Act ion com ple t edDuty on raw silk has been increased from 5 per cent to 15percent by amending S.No.No.276 of notification No.12/2012-Customs dated 17.03.2012 vide notification No.12/2013-Customs dated 01.03.2013.Act ion com ple t edS. Nos. 122 A, 123 and 124 of notification No. 12/2012-


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Customs dated 17.03.2012 as amended vide notificationNo.12/2013-Customs dated 01.03.2013 incorporates thesechanges.Act ion com ple t edS. Nos 437 & 443 of notification No. 12/2012-Customs dated17.03.2012 as amended vide notification No.12/2013-Customs dated 01.03.2013 and clause 76 of the FinanceBill, 2013 incorporate these changes.Act ion com ple t edNotification No 25/2013-Customs (NT), dated 1st March,2013 contains these changes.Act ion com ple t ed33S.No. Para Budget Announcement Status of ImplementationNo.Position reported on 7 th January, 2014free limit to `50,000 in the case of a malepassenger and `100,000 in the case of afemale passenger, subject to the usualconditions.[Nodal Ministry/Department: Department ofRevenue]120. 170 The readymade garment industry is in thethroes of a crisis. The industry needs a lifeline.There is a demand to restore the zero excise duty route for cotton and manmade sector (spun yarn) at the yarn, fabric and garmentstages. I propose to accept the demand. Inthe case of cotton, there will be zero duty atthe fibre stage also and, in the case of spunyarn, there will be a duty of 12 percent at thefibre stage. The zero excise duty route will be in addition to the CENVAT route nowavailable.[Nodal Ministry/Department: Department ofRevenue]121. 171 I propose to totally exempt handmade carpetsand textile floor coverings of coir or jute fromexcise duty.[Nodal Ministry/Department: Department ofRevenue]122. 172 As a measure of relief to the ship buildingindustry, I propose to exempt ships and vesselsfrom excise duty. Consequently, there will beno CVD on imported ships and vessels.[Nodal Ministry/Department: Department ofRevenue]123. 173 What does a Finance Minister turn to when herequires resources? The answer is cigarettes.I propose to increase the specific excise dutyon cigarettes by about 18 percent. Similarincreases are proposed on cigars, cheroots andcigarillos.[Nodal Ministry/Department:Department ofRevenue]124. 174 SUVs occupy greater road and parking spaceand ought to bear a higher tax. I propose toincrease the excise duty on SUVs from 27percent to 30 percent. However, the increase


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will not apply to SUVs registered as taxis.[Nodal Ministry/Department: Department ofRevenue]S.No.16 of notification No. 30/2004-CE dated the 9 th July,2004 and S. No.7 of notification No. 7/2012-CE dated17.03.2012, as amended vide notification No.8/2013-CEdated 01.03.2013 has been amended to incorporate thesechanges.Act ion com ple t edDuty on handmade carpets and textile floor coverings ofcoir or jute from excise duty has been totally exempted byinserting S. No 173A of notification No. 12/2012-CE dated17.03.2012 vide notification No.12/2013-CE dated01.03.2013.Act ion com ple t edNotification No. 12/2012-CE has suitably been amendedvide

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Taxation Budget Decisions

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