ECB Allowed for Low Cost Housing
Rs. 4,000 Crore Allocated for Rural Housing Fund
Indirect Finance Under Priority Sector Doubled
Presenting the General Budget 2012-13 in LokSabha here today, ShriPranab Mukherjee, Finance Minister announced various majors for mitigating shortage of housing for low income groups. The Finance Minister proposed allowing External Commercial Borrowings (ECB) for low cost affordable housing projects and setting-up of a Credit Guarantee Trust Fund to ensure improved flow of institutional credit for housing loans.
The Finance Minister, Shri Mukherjee informed that provisions under the Rural Housing Fund are proposed to be enhanced from Rs. 3000 crore to Rs. 4000 crore. He also proposed enhancement of limit of indirect finance under priority sector from Rs. 5 lakh to Rs. 10 lakh.
The Finance Minister announced extension of the scheme of interest subvention of 1 percent on housing loan up to Rs. 15 lakh where the cost of the house does not exceed Rs. 25 lakh for another year.
ECB for Working Capital Allowed in Civil Aviation
Direct Import of ATF by Indian Carrierspermitted
49% Participation in Equity by Foreign Airlines Under Consideration
Presenting the General Budget 2012-13 in LokSabhatoday, the Union Finance Minister, ShriPranab Mukherjee proposed permission of External Commercial Borrowings (ECB) for working capital requirement of the airline industry for one year subject to total ceiling of US $ 1 billion. The Finance Minister said that this was to address the immediate financing concerns of the Civil Aviation sector, which is facing financial crisis.
In order to reduce the cost of Aviation Turbine Fuel (ATF), which largely contributes to the high operating cost of the civil aviation sector, the Finance Minister stated that the Government has permitted direct import of ATF by Indian Carriers, as actual users.
Shri Mukherjee informed that a proposal to allow 49% equity participation by foreign airlines engaged in operation of scheduled in non-scheduled air transport services is under active consideration of the Government.
ECBS to Part Finance Power Project DEBT
Inter-Ministerial Group for Periodical Group of Allocated Coal Mines
While presenting the General Budget 2012-13 here today in LokSabha, ShriPranab Mukherjee, Finance Minister proposed permission of External Commercial Borrowings (ECB) in the power sector in order to partly finance the Rupee debt of existing power plants.
Shri Mukherjee stated that an inter-ministerial group is being constituted to undertake periodical review of allocated coal mines and to make recommendations on de-allocations, if required.
The Finance Minister informed that to address the concern of fuel supply constraints, Coal India Limited (CIL) has been advised to sign fuel supply agreement with power plan that have entered into long term Power Purchase Agreements with DISCOMs and will get commissioned on or before March 31st 2015.