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India Equity Research Reports, IPO and Stock News
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Capital Goods & Infrastructure
We expect the thrust on the infrastructure sector to continue and
measures are expected to ease funding constraints. Extension of Sec
80 IA benefits beyond Mar’ 11 is also expected. We expect greater
allocation of funds in the power transmission and distribution sector,
with a focus on rural electrification and APDRP. Increase in fund
allocation for Defence and renewable energy is also likely.
Expectations
Thrust on infrastructure to continue; measures to ease funding
constraints in the form of debt funds and tax exemptions are likely.
Status quo on excise duty.
Extension of Sec 80 IA of the Income-Tax Act, 1961, for asset owners.
Greater spending on rural electrification and power distribution
reforms to bring down T&D losses.
Continuing focus on renewable energy.
Greater allocation for Defence capital expenditure.
Impact
Extension of Sec 80-IA of the Income-Tax Act,1961, would enable
asset developers to continue to avail of 100% tax exemption for a
block of ten years of the first fifteen years of assets coming into
operation. Currently, the benefit is available for projects likely to
achieve CoD up to 31 Mar ’11. Project CoD after this date would be
liable to pay full tax as per current income-tax laws.
Greater expenditure on Defence equipment would benefit equipmentmanufacturing
companies, especially due to the “offset” provisions in
the procurement policy.
Greater allocation to APDRP and RGGVY translates into more orders
to T&D-EPC players.
Companies affected
Sec 80IA extension would benefit asset developers: L&T, GMR Infra,
GVK Power, NTPC, Adani Power, Tata Power, Lanco Infratech.
Companies benefiting from higher budget allocation to Defence:
Bharat Electronics, BEML, Tata Power, L&T, Mahindra & Mahindra.
KEC International, Kalpataru Power and Jyoti Structures would
benefit from greater allocation to the Power T&D sector.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Capital Goods & Infrastructure
We expect the thrust on the infrastructure sector to continue and
measures are expected to ease funding constraints. Extension of Sec
80 IA benefits beyond Mar’ 11 is also expected. We expect greater
allocation of funds in the power transmission and distribution sector,
with a focus on rural electrification and APDRP. Increase in fund
allocation for Defence and renewable energy is also likely.
Expectations
Thrust on infrastructure to continue; measures to ease funding
constraints in the form of debt funds and tax exemptions are likely.
Status quo on excise duty.
Extension of Sec 80 IA of the Income-Tax Act, 1961, for asset owners.
Greater spending on rural electrification and power distribution
reforms to bring down T&D losses.
Continuing focus on renewable energy.
Greater allocation for Defence capital expenditure.
Impact
Extension of Sec 80-IA of the Income-Tax Act,1961, would enable
asset developers to continue to avail of 100% tax exemption for a
block of ten years of the first fifteen years of assets coming into
operation. Currently, the benefit is available for projects likely to
achieve CoD up to 31 Mar ’11. Project CoD after this date would be
liable to pay full tax as per current income-tax laws.
Greater expenditure on Defence equipment would benefit equipmentmanufacturing
companies, especially due to the “offset” provisions in
the procurement policy.
Greater allocation to APDRP and RGGVY translates into more orders
to T&D-EPC players.
Companies affected
Sec 80IA extension would benefit asset developers: L&T, GMR Infra,
GVK Power, NTPC, Adani Power, Tata Power, Lanco Infratech.
Companies benefiting from higher budget allocation to Defence:
Bharat Electronics, BEML, Tata Power, L&T, Mahindra & Mahindra.
KEC International, Kalpataru Power and Jyoti Structures would
benefit from greater allocation to the Power T&D sector.
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