Budget Countdown: 16 days to go

[K.Karthik Raja]

Budget Countdown: What's in store... 16 days to go

Finance Minister P. Chidambaram will present the Union Budget for
2008-09 (Apr-Mar) on Feb 29. A daily update on the country's
expectations of the Budget, cutting across industry sectors and the
financial markets...
.
COMMODITIES MARKET
==================
P.H. RAVIKUMAR, CEO, NATIONAL COMMODITY AND DERIVATIVES EXCHANGE
"We would like to see the Budget allowing participation of banks
and
mutual funds in the commodity market. We also expect permission to
foreign institutional broking houses to set up subsidiaries in India
for taking part in the commodity market."
.
KAILASH GUPTA, MANAGING DIRECTOR, NATIONAL MULTI COMMODITY EXCHANGE
"Last year, the finance ministry made provisions to offset profit
and loss in the securities market as against normal business income.
If we really want to promote the commodities market in India, similar
provisions should be extended to the commodities market as well in the
Budget."
.
JOSEPH MASSEY, DEPUTY MANAGING DIRECTOR, MCX LTD.
"We expect more capital market reforms in the Budget--especially,
enabling provisions to offset speculative profits accruing from
derivatives against normal business income. This would bring commodity
market at par with the security market."
.
ANJANI SINHA, CEO, NATIONAL SPOT EXCHANGE
"We expect a national level policy on agricultural marketing
reforms. Such a policy would provide the much needed direction to the
states to initiate reforms at the grassroot level."
.
SUNIL RAMRAKHIANI, CEO, WAY2WEALTH BROKERS PVT. LTD.
"The Budget should make adequate provisions to encourage
participation of big players like banks and mutual funds in the
commodities market, and also foreign institutional investors down the
line. Secondly, a uniform sales tax regime should be implemented
across states, beginning with exchange-related deliveries. Thirdly,
Warehouse Receipt Act should be firmly implemented. And
lastly, income from hedging transactions should be differentiated as
business income as in the securities market, and not as a speculative
income."
.
KISHORE NARNE, VICE-PRESIDENT (COMMODITY RESEARCH), ANAND RATHI
"Last year's Budget started with the suspension of wheat and rice
futures trade and the appointment of a panel to study the impact of
the futures market on prices of essential commodities. In this Budget,
ideally, the ban should be revoked."
.
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S E C T O R S C O V E R E D E A R L I E R:
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AGRICULTURE
===========
M.S. SWAMINATHAN, FORMER CHAIRMAN, NATIONAL FARMERS' COMMISSION
* Loan waiver for very poor farmers, in areas with high suicide rates
* Creation of a price stabilisation fund
* Reduction in farm loan rates to 4%
* Increase in crop loan recovery cycle to 4-5 years.
.
D.K. JOSHI, SENIOR ECONOMIST, CRISIL LTD.
* Focus on increasing farm productivity
* Higher allocations to irrigation and farm research sectors.
* Schemes for employment generation and skill upgrade.
.
U.S. AWASTHI, MANAGING DIRECTOR, INDIAN FARMERS FERTILISER COOPERATIVE
LTD.
* Higher fertiliser subsidy
* Cess to fund fertiliser subsidy burden.
.
R.G. AGARWAL, CHAIRMAN, CROP CARE FEDERATION OF INDIA
* Cut in excise duty on pesticide
.
B.V. MEHTA, EXECUTIVE DIRECTOR, THE SOLVENT EXTRACTORS' ASSOCIATION OF
INDIA
* Treat edible oils and oilseeds on par with essential commodities for
VAT.
* VAT on oilseeds should be reduced to zero or 1%.
.
S.L. JAIN, DIRECTOR GENERAL, INDIAN SUGAR MANUFACTURERS' ASSOCIATION
* Reduction in excise duty on molasses.
.
.
AUTOMOTIVE
==========
DILIP CHENOY, DIRECTOR GENERAL, SOCIETY OF INDIAN AUTOMOBILE
MANUFACTURERS
* Uniform 16% excise duty across all automobile segments.
* Measures to reduce interest rates.
.
PAWAN GOENKA, PRESIDENT, AUTOMOTIVE SECTOR, MAHINDRA & MAHINDRA LTD.
* Uniform 16% excise duty across all automobile segments.
.
H.S. GOINDI, SENIOR VICE-PRESIDENT, TVS MOTOR CO.
* Cut excise on two-wheelers to 8%.
* Measures to improve retail credit availability.
.
RAVI PISHARODY, VP, SALES & MARKETING, COMMERCIAL VEHICLES, TATA
MOTORS
* Cut in excise duty on commercial passenger vehicles.
* Duty reduction in goods carriers.
* Measures to reduction interest rates.
.
L.D. MITTAL, CHAIRMAN, SONALIKA GROUP
* Govt loans to farmers to buy tractors.
.
NEERAJ KANWAR, JOINT MANAGING DIRECTOR, APOLLO TYRES
* Correction of anomaly between import duty of 20% on natural rubber
and 10%
on tyres.
.
.
OIL & GAS
=========
M.S. SRINIVASAN, SECRETARY, MINISTRY OF PETROLEUM & NATURAL GAS
* 'Declared goods' status for natural gas, liquefied natural gas, bio-
fuels
* Waiver of customs duty on LNG imports.
* Reduction of ad valorem excise duty on petrol, diesel to nil
* Exemption from service tax on exploration and exploitation activity
.
S.V. NARASIMHAN, DIRECTOR-FINANCE, INDIAN OIL CORP. LTD.
* Some solution to reduce impact of crude price surge on marketing
companies
* Cut in customs duty on crude imports, excise duty on petroleum
products
* Infrastructure status for oil product pipelines
* Rationalisation in corporate taxes
.
R.K. GOEL, DIRECTOR FINANCE, GAIL (INDIA) LTD.
* Waiver of customs duty on liquefied natural gas import for all
sectors
.
OM NARAYAN, MANAGING DIRECTOR, INDRAPRASTHA GAS LTD.
* Infrastructure status for city gas distribution pipeline for tax
relief
* No value-added tax on piped natural gas
.
T.K. ANANTH KUMAR, DIRECTOR FINANCE, OIL INDIA LTD.
* Exemption from levy of service tax on exploration, production
activity
* Cut in some corporate taxes--at least the surcharge on oil, gas
industry
.
.
STEEL SECTOR
============
R.K. SHARMA, PRESIDENT, FEDERATION OF INDIAN MINERAL INDUSTRIES
* Withdrawal of export duty on iron ore.
* Complete removal of import duty on steel
.
J. SARMA, INTERIM STEEL SECRETARY, GOVERNMENT OF INDIA
* Import duty cut for metallurgical coal, scrap metal
* Ad valorem (value-based) export duty on iron ore
.
N.C. MATHUR, DIRECTOR, CORPORATE AFFAIRS, JINDAL STAINLESS
* Scrap import duty on all three nickel products and steel scrap
* Import duty on cold-rolled steel be doubled to 10%



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