Union Budget 2011 impact on infrastructure sector: Angel Broking

The Union Budget 2011-12 continued to lay stress on infrastructure development, as the allocation for the sector has been increased by 23% yoy to Rs 2,14,000 cr which is 48.5% of the planned expenditure. Further, steps like tax free infra bonds worth Rs 30,000 cr by various government undertakings, creation of infra debt funds are positive for the sector. Also, MAT rate has been hike from 18% to18.5% which would nullify the benefit from surcharge reduction from 7.5% to 5%. The tax benefit under Section 80IA and Rs 20,000 investment in Infrastructure Bonds has been extended by one year.