Dividend Distribution Tax (DDT) removedmaking India a more attractive investment destination
Start-ups with turnover up to Rs. 100 crore to enjoy 100% deduction for 3 consecutive assessment years out of 10 years.
Tax payment on ESOPs deferred
Cooperative societies exempted from Alternate Minimum Tax (AMT) just like Companies are exempted from the Minimum Alternate Tax (MAT).
Tax concession for foreign investments:
100% tax exemption to the interest, dividend and capital gains income on investment made in infrastructure and priority sectors before 31stMarch, 2024 with a minimum lock-in period of 3 years by the Sovereign Wealth Fund of foreign governments.
Others | Indirect Tax
Excise duty proposed to be raised on Cigarettes and other tobacco products, no change made in the duty rates of bidis.
Customs Act being amended to enable proper checks of imports under FTAs.
Anti-dumping duty on PTA abolished to benefit the textile sector.
Provisions for checking dumping of goods and imports of subsidized goods being strengthened.
Vivad Se Vishwas’ scheme is aimed at reducing litigations in:
Both 1 & 2
Neither 1 nor 2
3. Urban Landscape
Story in numbers
Currently – 34%
By 2030 – 40%
By 2050 – 50%
Urban share of GDP
2009-10 – 62-63%
2030 – 75%
Urbanization Strategy of India
Overall Investment in Urban Rejuvenation
Progress | SBM
B/w 2014 & 2020
10 Cr toilets in rural areas
65 L household toilets + 6 L public toilets in urban areas
60% municipal wards practice source segregation (from 41%)
All cities of 35 States/UTs => ODF
699 districts, 2.5 L GPs and 6 L villages => ODF
Focuses on ensuring:
water supply, sewerage and septage management
storm water drainage
availability of green and open spaces
reform management and support
More than 5000 projects under construction/completion
64% urban households have tap water supply
On track to achieve 62% sewerage coverage by 2020
Online Building Permission System in more than 1500 ULBs
Replacement of streetlights with LED lights (74 Lakh)
Credit Rating (36 cities have A and higher rating)
Municipal Bonds worth Rs. 3300 Cr issued
Ahmedabad, Amravati, Bhopal, Hyderabad, Pune, Surat & Vizag
Jal Shakti Abhiyan – Urban (July 2019) – for water conservation
Progress | SCM
Progress | SCM
Progress | PMAY (U)
It is rapidly moving towards achieving the vision for providing a pucca house to every household by 2022.
Out of 1.03 crore houses approved, 60 lakhs have been grounded for construction, of which 32 lakh houses have been completed and delivered.
Progress | EODB
National Infrastructure Pipeline
103 lakh crore worth projects; launched on 31st December 2019 for the period 2020-2025.
More than 6500 projects across sectors, to be classified as per their size and stage of development.
16% has been earmarked for urban rejuvenation
1-year internships to fresh engineers in all ULBs in order to enhance the skill of the youth
4. Transport Infra
To achieve the GDP of $5 trillion by 2024-25, India needs to spend about $1.4 trillion (` 100 lakh crore) over these years on infrastructure
Road transport is the dominant mode of transportation in terms of its contribution to Gross Value Added (GVA) and traffic share.
As per Govt. report, in 2011-12, road transport is estimated to handle 69% and 90% of the countrywide freight and passenger traffic
As on Mar 2018, India had a road network of about 59.64 lakh km. The total length of NHs was 1.32 lakh km as on Mar 2019.
The pace at which roads have been constructed has grown from 17 kms per day in 2015-16 to 29.7 kms per day in 2018-19.
However, the pace seems to have moderated to 12 kms per day in 2019-20.
Indian Railways (IR) with over 68,000 route kms is the third largest network in the world under single management.
During 2018-19, it carried 120 crore tonnes of freight and 840 crore passengers making it the world’s largest passenger carrier and 4th largest freight carrier.
Critical Challenges in Railways Modernization
Fundamentals of how PPPs would be encouraged
R&D for indigenous manufacturing of Rolling Stock
India is the 3rd largest domestic market for civil aviation in the world.
India has 136 commercially-managed airports by AAI and 6 under PPP for Operation, Maintenance and Development of airports.
A total of 43 airports have been operationalized under UDAN
To ease the strain, 100 more airports are to be made operational by FY 2023-24
To bring in efficiency and resources, 6 airports (Ahmedabad, Guwahati, Jaipur, Lucknow, Mangalore, and Thiruvananthapuram) have been taken up for development under PPP mode
Focus areas in Aviation
Increasing capacity and service levels in top 30 airports via PPP
Increasing no. of airports to about 100 and ensuring that all tier II and tier III cities have their own airports
Attracting PPPs in lower tier cities is difficult because of viability – may need VGF / subsidies to make workable
AAI is fallback option but concerns about AAI managing many loss-making airports is there
Around 95% of India’s trade by volume and 68% in terms of value is transported by sea.
Despite one of the largest merchant shipping fleet (> 1400) among developing countries, India’s share in total world dead weight tonnage (DWT) is only 0.9% as on January 1, 2019 according to Institute of Shipping Economics and Logistics.
Issues highlighted by Professor G Raghuram
Sagarmala is not proceeding at the pace envisaged - a part of the problem is environment but there is also a problem of need
Capacity additions may not be needed unless for captive purposes
There could possibly be a situation of excess capacity in container domain
Could also be the case for coal – as power sector moves towards renewables
Some earlier PPPs not able to perform well due to restrictive concession agreements
Need restructuring of regulatory regime
Connectivity issues on land side, esp. rail, should improve with DFCs and formation of Indian Port Rail Corp. Ltd. (formed in 2015)
Air & Rail for Farm
Krishi Udaanto be launched by the Ministry of Civil Aviation:
Both international and national routes to be covered.
North-East and tribal districts to realize Improved value of agri-products
Kisan Railto be setup by Indian Railways through PPP:
To build a seamless national cold supply chain for perishables (milk, meat, fish, etc.
Express and Freight trains to have refrigerated coaches.
Money?.......National Infrastructure Pipeline
Launched on 31 Dec 2019, would commence in phases from 2020-21 to 2024-25