Budget will pave way to modernization - Welspun

29 Feb '08

2 min read

Welspun welcomes the increase of Technology Upgradation Fund (TUF) scheme to Rs 1,090 crore. This will give fillip for modernization and bring in advanced textile technology to the country, which will directly help the country achieve its textile export targets.

Other significant steps have been:
- All 30 integrated textile parks approved Rs 450 crore provision for textile parks

As a thrust to enhance industry particularly steel industry, following changes will benefit:
- Project import customs duty reduced from 7.5% to 5%;
- Steel melting scrap and aluminium scrap made nil;
- Increase export taxes on key raw materials for steel
- Increase export duty on iron ore to Rs 300/tonne
- Custom duty on steel scrapped
- Import duty on Naptha restructured

Other important declarations have been:
- Q3 manufacturing growth target at 9.3% vs 11.3%
- CENVAT reduction to 14% from 16%
- 3 IITS and 3 IISC giving impetus to higher level skilled education
- Banking transaction tax to be removed
- Education and Health allocation increased by 20% from 28674 cr to Rs 34,400
- Schemes for woman to get Rs 11,460 cr this fiscal
- Similar benefits to minority sections

Negatives:
• Rs 60,000 Crs Banking hole due to waivers of agricultural loans
• Short term capital gains to increase to 15%
• AMC under ULIP brought under service Tax regime beside 3 other sectors.

Welspun India Ltd

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