Budget 2013: Key takeaways for Food Security, Infrastructure and Investment

By DILASHA SETH

Towards food security

Food Security Bill is a promise of the UPA government hope parliament passes the bill as soon as possible.

We have set apart a provision worth Rs 10000 crore for incremental cost likely towards the FSB, said Finance Minister P Chidambaram adding that urgent need to attract investments from both domestic and foreign investors. Investment is an act of faith.

It is important to improve communication of policies to avoid distrust, undue regulatory burden and tax laws. He emphasized on improving the ease of doing business business in the country.

Infrastructure

Infrastructure needs large volumes of funds and investments. Expenditure of $1 trillion in the 12th plan is required for infra. Need new and innovative means for investment for this order. Government will take following to investment in infra--infra debt funds (IDFs) will be encouraged. Two IDFs were launched in Feb.

Investment

Revival of investment in manufacturing key challenge. Most are not able to clear regulatory hurdles. CCI to help remove bottlenecks. In CCI meetings decisions taken on numbers of oil and gas and coal projects. It will take up some more shortly.

Investment allowance for new high value projects.

RGESS wil be liberalized to invest in mutual funds and can do so in three successive years. Income limit will be raised to Rs 12 lakh from Rs 10 lakh.

For MSMEs, Chidambaram raised refinancing limit from Rs 5,000 crore to Rs 1,000 crore.

Handloom sector is in distress. Working cap and term loans at concessional interest of 6%.