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IIFCL to refinance 60% of commercial bank loans for PPP projects in critical sectors over the next fifteen to eighteen months. IIFCL and Banks are in a position to support projects involving total investment of Rs.1 trillion.
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Allocation under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) increased by 87% YoY to Rs.1.3 trillion in 2009-10.
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Allocation for housing and provision of basic amenities to urban poor enhanced to Rs.39.7 bn in 2009-10.
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Allocation to National Highways Authority of India (NHAI) for the National Highway Development Programme (NHDP) increased by 23% in 2009-10.
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Allocation under Accelerated Irrigation Benefit Programme (AIBP) increased by 75 % in 2009-10.
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Fringe benefit tax (FBT) abolished.
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Rate of minimum alternate tax (MAT) on book profits has been increased from 10% to 15%, but with a provision of carrying forward the tax credit on MAT to ten years from the current seven years
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Setting up of IIFCL would enable the funding of large infra projects.
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Increase in allocation in schemes like JNNURM will improve the domestic infrastructure in the country especially the urban areas.
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Increased allocation to NHAI would mean better road connectivity across the country, thus enhancing the trade flow.
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Increase in allocation for AIBP would enable greater irrigation facilities, thereby increasing the agricultural productivity.
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Companies like Jain Irrigation and Madhucon Projects will benefit from increased outlay in irrigation spending.
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Companies like HCC, IRB Infra and Gammon likely to benefit from the highway development projects.
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India is on the verge of witnessing a sustained growth in infrastructure buildup. With a slew of announcements in housing, road, port and airport development, we are seemingly on a path of sustained recovery in the economic growth on the back of increased focus on the infrastructure construction in the country. From a policy perspective, there has been a growing consensus that a private-public partnership is required to remove difficulties concerning the development of infrastructure in the country. A substantial chunk of the abovementioned investment target is likely to come from the private sector. The government has set up IIFCL to finance PPP projects in the sector.
