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AGRI SECTOR
 The
Budget throws the spotlight on value-addition in the agri sector
through incentives to Storage and Food-processing (with an excise
exemption for the Food processing sector and the removal of all
restrictions on the inter-State movement of farm produce). Raising
tariff walls on agri-commodity imports to the tune of 70-85 % has
reassured the farming community. The FM however has not touched
the farm gate price of urea from the current Rs 4,600 per tonne.
The Domestic Urea Subsidy Bill is to be reduced from RS 9,480 crore
to RS 7,956 crore in the coming fiscal. This burden of subsidy reduction
is to be shouldered by industry, rather than the farmer.
INFRASTRUCTURE
A 10-year Tax holiday for infrastructure (roads, highways, rail
system, water treatment and supply, irrigation, sanitation, solid
waste management) has been announced.
 Power
- The budget proposes RS 750 crore allocation for rural electrification,
to be completed in 6 years; 100% installation of metering by December
2001; restructuring of the State Electricity Boards (SEBs) and
commercial distribution of power and a Rs 2,500 crore fund proposed
to provide connectivity to every village with a population of over
1,000 persons, by 2003.
Roads - 50% of the Diesel cess is earmarked for development
of roads in the rural areas. And RS 962 crore from the cess fund
is being given to the states for State Boards. This makes the total
outlay RS 8,727 crore (a 93% increase).
Shipping - Depreciation rates for ships and inland vessels
have been raised by 5%.
Petroleum and Chemicals - The March 2002 deadline for dismantling
the administered pricing mechanism will be adhered to. State control
of Urea prices will be eased in phased programmes by April 1st 2006.
An 8% excise duty surcharge on Compressed Natural Gas (CNG).
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