Infrastructure

Power Sector

Key Highlights

* Cost of Subsidy to SEBs - Rs. 36,000 crores this year

* Actual commercial losses Rs. 24, 000 crores

* Dues owed to the Central Government Utilities by SEB's Rs. 25,000 crores

Proposals

MOUs to be signed between Central Government and State Governments. These are:

* Time bound programme for installation of 100% metering by December 2001

* Energy Audit at all levels

* Specific programme for reduction and eventual elimination of power theft

* Tariff determination by SERCs and compliance thereof and

* Commercialisation of distributions

MOUs have already been entered with 5 states

Other key proposals

* Plan allocation to accelerated power development programme has been increased to Rs.1,500 Crores from Rs.1,000 crores.

* To acceleate the reform process, Electricity Bill 2001 will be introduced with in this session of Parliament.

* Plan outlay for Central sector power utilities will be increased to Rs.10,030 crores up from Rs.9,194 crores.

* Ten year tax holiday for generation and distribution of power can be availed for next fifteen years for operations commencing on or before 31st March 2006

Telecom Sector

Key Highlights

* Overall telecom density to reach 3.5 per hundred by March 2001

* 8 Lacs STD, ISD, Local Booths around the country

Proposals

*Five year tax holiday and 30% deduction for the next five years for units commencing there operations on or before 31st March 2003

*Custom duty on telecom equipments being redueced from 25% to 15%

Ports

Highlights

* Ports handling capacity is expected to go up to 314 million tonnes during the current year

* Ennore port and Jawaharlal Nehru port in New Mumbai, major ports will be corporatised, which will enable them to raise resources from the market.

Proposals

* Tax holiday extended.

* Big boost for public issues since investment in financial instruments, including equity instruments of infrastructure companies eventuate in a capital gains exemption