A special purpose vehicle (SPV) to be launched to finance infrastructure projects that are financially viable. Investment limit for 2005-06 is fixed at Rs 100 bn.
NHDP-III to be launched in FY06 to target selected high density highways not forming part of the GQ or the N-S, E-W corridor; Rs 14 bn provided in FY06 to four-lane 4,000 kms.
Excise duty on A/Cs has been reduced from 24% to 16%.
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Estimated outlay for Jawaharlal Nehru National Urban Renewal Mission to be Rs 62.5 bn during 2006-07, including a grant component of Rs 45.9 bn. Through this mission, the government intends to promote establishment of new towns, preferably focused on a specific industry (IT) or a specific theme (education or health).
Budget support for National Highway Development Programme (NHDP) enhanced from Rs 93.2 bn to Rs 99.5 bn in 2006-07.
Special accelerated road development programme for the North Eastern region proposed at an estimated cost of Rs 46.2 bn approved with allocation of Rs 5.5 bn in 2006-07
1,000 kms of access-controlled Expressways to be developed on the Design, Build, Finance and Operate (DBFO) model.
Capital expenditure on defense proposed at Rs 375 bn.
Peak rate of customs duty on non-agricultural products has been reduced from 15% to 12.5% with a few exceptions.
Exemption to specified goods for making capital goods for setting up a unit with an investment of Rs 50 m or more withdrawn.
Resin binders used for manufacture of rotor blades for wind operated electricity generators exempted from excise duty.
Under NELP VI, 55 blocks and area of 355,000 sq kms offered. Investment of Rs 220 bn expected in the refinery sector in the next few years.
Five ultra mega power projects of 4,000 MW each to be awarded before December 31, 2006
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Hike in corpus of Rural Infrastructure Development Fund-XIII and Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY)
Private sector participation in transmission projects and hike in budgetary support for APDRP
Reduction in customs duty on imports of medical equipments from 12.5% to 7.5%
Increase in allocation to defense to Rs 960 bn, including Rs 420 bn for capital expenditure
Concessions under section 80IA for infrastructure facilities extended to cross country natural gas distribution network, including gas pipeline and storage facilities integrated to the network
Customs duty on sprinklers and drip irrigation systems for agricultural & horticultural purposes is reduced from 7.5% to 5%
Concessional customs duty of 5% on specified plantation machinery extended by two years to April 2009
Customs duty on food processing machinery and parts reduced from 7.5% to 5%
Dividend distribution tax to be hiked from 12.5% to 15%
Additional education cess of 1% to fund secondary and higher education
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