Gujarat government to release new industrial policy draft

The Gujarat government is expected to soon announce a new industrial policy, focusing on investment facilitation. The new policy will also outline Corporate Social Responsibility for industry associations and corporate houses, focusing on the corporate houses which will allocate the developmental activities in sectors like Health, Education and Environment, based on the size and scale of their industrial operations in the respective taluka, village or district.

New norms may boost purchase of thermal power technology

In a bid to meet requirements of major power producers of India like NTPC and Damodar Vally Corporation , the Union Power Ministry is likely to finalise new norms for bulk purchase of supercritical thermal power technology, hence encouraging investment in supercritical technology in India. BHEL-Siemens, Mitsubishi-L&T, Bharat Forge-Alstom and Toshiba-JSW have already tiedup for providing the technology. The Ministry is expected to work on high capacity supercritical power plant ranging from 660 MW to 1,000 MW, and lower modules such as 200 MW or 300 MW, which will enable entrepreneurs to set up small but efficient captive power plants.

Maharashtra government sees 2009 as 'housing year'

The Maharashtra government is planning to scrap value added tax (VAT) for housing projects following requests from real estate developers and is working making 2009 as the 'housing year' in the state by constructing around 10 lakh houses within two years. According to the State Housing Department, these projects will be developed through schemes under Maharashtra Housing and Area Development Authority, National Urban Renewal Mission, Indira Awas Yogna, Nivara Yojana and the Slum Rehabilitation Authority. The state government has also agreed to extend the recent hike in floor space index (FSI) from 1 to 1.33 in Mumbai, to the entire state. Also, the September 2008 government decision to allow IT parks (which enjoy higher FSI) to utilise 80 per cent of the total constructed area for financial services and banks, will be made effective.

Infrastructure Projects: Centre to consider extension of exemption on ECBs

To increase infrastructure investments, the Centre is considering a proposal to extend withholding tax exemption on External Commercial Borrowings (ECBs), which are raised for infrastructure projects. These initiatives are considered to help companies fund infrastructure projects, which are estimated to require $500 billion investments by 2012. Presently, only SEZ units are allowed to bring in ECBs. The Reserve Bank of India, which had barred SEZs from raising ECBs, is now considering this relaxation. The Centre is also considering allowing SEZ developers to raise funds through the ECB route for pure infrastructure development which includes construction of airports, ports, roads and power generation facilities.