Media reports suggest that while tabling the budget 2013-14, the finance minister may announce the expansion of the definition of infrastructure sector so that growth across wider range of sectors is boosted.
It may be noted that some sectors like telecom, housing, shipping, education are seeking infrastructure status. On February 28, Finance Minister P Chidambaram will present the budget for 2013-14 in the Lok Sabha.
If the government expands the definition of infrastructure, the same would be recorded in the Income Tax Act and Direct Taxes Code so that the newly inducted sectors may avail tax benefits.
The expansion of the definition is expected to have considerable impact on industrial development and growth, besides attracting overseas capital.
Several countries like Japan, Korea, Philippines, Indonesia and Thailand have earlier provided incentives that led to rapid growth of infrastructure sector, they added.
Infrastructure sector status ensures tax benefit and easier access to domestic and global funding. Currently, a staggering sum of investments are being planned in infrastructure sectors like roads and highways, ports and airports, railways and power.
India’s infrastructure sector will require investment of about $1 trillion in the 12th Five Year Plan, beginning April 2012, with half of it expected to come from the private sector.
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