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xÉ<Ç ÉÊnããÉÉÒ - 110001FINANCE MINISTER

INDIANEW DELHI - 110001

FOREWORD

In keeping with the endeavour of the Government of India to promote transparency

and accountability, a Brochure containing the status of implementation of

announcements made in the Budget for 2011-12 has been compiled.

I am happy to place this Brochure before the House.

[Pranab Mukherjee]

http://indiabudget.nic.in


1. 18 Introduction of Bill to amend the FRBM Act 1

2. 19 Amendment/enactment of FRBM Acts by the respective StateGovernments 1

3. 20 Introduction of Public Debt Management Agency of India Bill 1

4. 22 Introduction of Direct Taxes Code (DTC) 1

5. 23 Introduction of Constitution Amendment Bill towardsroll out of GST 1

6. 24 Setting up of a Pilot portal by NSDL for establishing andoperating IT backbone for GST 2

7. 25 Setting up of a Committee for classification of publicexpenditure between plan, non-plan, revenue and capitalspending 2

8. 26 Extension of Nutrient Based Subsidy regime to urea 2

9. 28 Report of Task Force on proposed direct transfer of subsidyfor kerosene, LPG and fertilizers 3

10. 30 To maintain the momentum on disinvestment byraising ` 40,000 crore 3

11. 31 Further liberalizing FDI policy 3

12. 32 Foreign Institutional Investors 4

13. 33 Raising the limit of investment in corporate bonds by FIIs 4

14. 34 Moving various legislations in financial sector 4

15. 35 Amendments in the Banking Regulation Act to facilitategrant of additional banking licenses to private sector players 5

16. 36 Public Sector Bank Recapitalisation 5

17. 37 Recapitalisation of Regional Rural Banks 5

18. 38 Setting up Women’s SHG’s Development Fund 6

19. 39 Raising corpus of Rural Infrastructure Development Fund 6

20. 40 Providing additional funds to SIDBI for refinancingincremental lending by Banks to MSMEs 6

21. 41 Providing ` 3000 crore to NABARD to enable handloomweaver cooperative societies to repay their debts 7

22. 42 Increasing target of outstanding loans to minoritycommunities by PSBs to 15 per cent 7

23. 43 Liberalizing interest subvention scheme on housing loans 7

24. 44 Enhancement of house loan limit under priority sector lending 7

25. 45 Enhancement of provision under Rural Housing Fund 7

26. 46 Creation of Mortgage Risk Guarantee Fund under RAY 8

Table of Contents

S. No. Para No. Subject Page(in the Budget

Speech of2011-12)


27. 47 Setting up of Central Electronic Registry under theSARFAESI Act, 2002 8

28. 48 Notification of Financial Sector Legislative Reforms Commission 8

29. 49 Re-introduction of Companies Bill 8

30. 51 Enhancement of allocations for RKVY 8

31. 52 Enhanced allocation for bringing green revolution 9

32. 53 Integrated Development of pulses villages in rainfed areas 9

33. 54 Promotion of Oil Palm Plantation 9

34. 55 Initiatives on Vegetable Clusters 10

35. 56 Promotion of higher production of Nutri-cereals 10

36. 57 National Mission for Protein Supplements 10

37. 58 Accelerated Fodder Development Programme 11

38. 61 National Mission for Sustainable Agriculture-Promotionof organic farming 11

39. 62 Stepping up direct lending for agriculture credit by Banks 11

40. 63 Enhancement of additional interest subvention to farmers 12

41. 64 To provide funds to NABARD’s short-term Rural Credit Fund 12

42. 65 Setting up of more Mega Food Parks 12

43. 66 Creation of Storage Capacity and Cold Chains underRural Godown Scheme 13

44. 67 Setting up of more Cold storage projects 13

45. 68 Recognizing cold chains and post- harvest storage asinfrastructure sub-sector 13

46. 69 Review of Agriculture Produce Marketing Acts byState Governments 13

47. 71 Comprehensive policy on developing Public-PrivatePartnerships 14

48. 72 Long term financial assistance to infrastructure projectsby IIFCL 14

49. 73 Allowing issue of infrastructure Tax free bonds by variousGovt. undertakings 14

50. 74 Creation of Special Vehicles in the form of notifiedInfrastructure Debt Funds 14

51. 75 National Manufacturing Policy 15

52. 76 Recommendations of two Committees for greatertransparency and accountability in procurement policy 15

53. 77 Recommendations of Group of Ministers onenvironmental concerns 15

54. 78 Launching of National Mission for Hybrid and Electric Vehicles 15


Speech of2011-12)

(ii)


55. 79 Providing financial assistance to ongoing and newMetro projects 16

56. 80 Including capital investment in fertiliser production as aninfrastructure sub-sector 16

57. 81 Action on remaining suggestions made by the TaskForce on Transactions Cost 16

58. 82 Introduction of self-assessment in Customs 16

59. 83 Introduction of a scheme for refund of taxes paid onservices used for export of goods 16

60. 84 Setting up of mega leather clusters and handicraft mega cluster 17

61. 87 Setting up of a dedicated Cell for Exchange of Tax Information 17

62 89 Commissioning of a study on unaccounted income/wealth 17

63. 90 Comprehensive national policy on management of

Narcotic Drugs and Psychotropic Substances 17

64. 91 National Food Security Bill (NFSB) 17

65. 92 Providing Rural Broadband Connectivity to Panchayats 18

66. 93 Indexing wage rates under MGNREGA 18

67. 94 Enhancement of remuneration of Anganwadi workers 18

68. 96 Enhancing the allocation for Education Sector 19

69. 97 Enhanced allocation for Sarva Shiksha Abhiyan 19

70. 98 Introduction of a scholarship scheme for SC and ST

students studying in classes IX and X 19

71. 99 National Knowledge Network 20

72. 100 Setting up of State Innovation Councils 20

73. 101 Special grants to universities and academic institutions 20

74. 102 Enhanced allocation for National Skill Development Fund 21

75. 103 Celebrations of 150th Birth Anniversary of Gurudev

Rabindranath Tagore 21

76. 104 Extending Rashtriya Swasthya Bima Yojana to

unorganized sector workers 21

77. 105 Providing Banking facilities to remaining habitations with a

population of over 2000 22

78. 106 Relaxing norms under Swavalamban scheme 22

79. 107 Relaxation of norms under Indira Gandhi National

Old Age Pension Scheme 22

80. 108 Allocation for Green India Mission 23

81. 109 Allocation for National Clean Energy Fund 23


Speech of2011-12)

(iii)


82. 110 Cleaning of Rivers and Lakes 23

83. 112 Providing additional funds for identified projects in

Ladakh and Jammu 23

84. 114 Integrated Action Plan for Left Wing Extremism

affected Districts 23

85. 115 Ex-gratia compensation to personnel of Defence and

Para-military forces disabled while engaged in tackling

Left Wing Extremism 24

86. 117 Enhanced provision for speeding up of delivery of justice 24

87. 119 Canvassing ‘caste’ as a separate exercise in Census 2011 24

88. 120 Aadhar numbers under UID Mission 25

89. 121 IT initiatives in CBDT and CBEC 25

90. 122 Mission Mode Projects for computerization of

Commercial Taxes in States 26

91. 123 Amendment of Indian Stamp Act, 1899 26

92. 124 Launching a new scheme by providing assistance to Statesto modernize their stamp and registration administration 26

93. 125 Introduction of a new simplified return form ‘Sugam’ 27

94. 126 Setting up more Benches of Settlement Commissions 27

95. 128 Recommendations of GoM on tackling corruption 27

96. 129 Performance Monitoring and Evaluation System 27

97. 130 Working out modalities for implementation of TechnologyAdvisory Group for Unique Projects (TAGUP)recommendations 27

98. 131 Issue of new series of coins with ` symbol 28

99. 144 Measures for attracting foreign funds for infrastructure 28

100. 147 To extend benefit of Investment Linked deduction toproducers of Fertilisers 28

101. 148 To extend benefit of Investment Linked deduction tobusinesses which develop affordable housing 28

102. 149 Enhancement of weighted deduction on payments madeto National Laboratories etc. for scientific research 28

103. 150 Strengthening system of collection of information fromforeign tax jurisdictions 29

104. 177 Extending scope of exemption for works of art and antiquities 29

105. 184 Achieving a closure fit between present service taxregime and its GST successors 29

106. 194 To initiate public debate on desirability to tax servicesbased on a small negative list 30


Speech of2011-12)

(iv)

1

S.No. Para Budget Announcement Status of ImplementationNo.

Position reported on January 31, 2012


1. 18. Fiscal ConsolidationThe experience with Fiscal Responsibility andBudget Management Act, 2003 (FRBM Act) atCentre and the corresponding Acts at Statelevel show that statutory fiscal consolidationtargets have a positive effect onmacroeconomic management of the economy.In the course of the year the CentralGovernment would introduce an amendmentto the FRBM Act, laying down the fiscal roadmap for the next five years.

[Nodal Ministry/Department:D/o Economic Affairs]

2. 19. The Thirteenth Finance Commission hasworked out a fiscal consolidation road map forStates requiring them to eliminate revenuedeficit and achieve a fiscal deficit of 3 per centof their respective Gross State DomesticProduct latest by 2014-15. It has alsorecommended a combined States’ debt targetof 24.3 per cent of GDP to be reached duringthis period. The States are required to amendor enact their FRBM Acts to conform to theserecommendations.

[Nodal Ministry/Department:D/o Expenditure]

3. 20. The Government has been in the process ofsetting-up an independent Debt ManagementOffice in the Finance Ministry. A Middle Officeis already operational. As a next step, I proposeto introduce the Public Debt ManagementAgency of India Bill in the next financial year.


4. 22. As Hon’ble Members are aware, the DirectTaxes Code Bill was introduced in Parliamentin August, 2010. After receiving the report ofthe Standing Committee, we shall be able tofinalise the Code for its enactment during2011-12. This has been a pioneering effort inparticipative legislation. The Code is proposedto be effective from April 1, 2012 to allowtaxpayers, practitioners and administrators tofully understand the legislation and adjust tothe revised procedures.

[Nodal Ministry/Department:D/o Revenue]

5. 23. Unlike DTC, decisions on the GST have to betaken in concert with the States with whom ourdialogue has made considerable progress in

The proposed Bill to amend the FRBM Act is expected tobe presented in the Budget Session 2012.

Work in progress

A detailed letter indicating fiscal consolidation roadmapduring award period of the Thirteenth Finance Commissionhas been sent to all State Governments. So far, 24 States(out of 28) have enacted/amended their FRBM acts asprescribed by the Thirteenth Finance Commission (includingtwo States, which have done so through Ordinances).

Action completed

Draft Legislation/Bill has been prepared and efforts are beingmade to introduce the Bill in the Budget Session ofParliament, 2012.

Work in progress

The DTC Bill is under active consideration with the StandingCommittee on Finance (SCF). Necessary action will betaken as soon as the report of the SCF is received.

Work in progress

A Bill to further amend the Constitution to enable introductionof Goods and Services Tax (GST) has been introduced inLok Sabha on March 22, 2011.

Budget 2011-2012

2




Based upon the directions of sub-working groups of theEmpowered Committee, discussion paper on key conceptsof GST is under finalization. The same will be discussed inthe sub- working group of officers. Once a consensus isreached on the key concepts, drafting of legislation for theCentre and the States will be taken up.

Action completed

Empowered Committee of State Finance Ministers has givenits approval for setting up an SPV for GST, to be calledGSTN and Cabinet approval for the same is being sought.However, on pilot basis, NSDL has already initiated pilotproject with 11 States.

Action completed

The Committee set up under the Chairmanship ofDr. C. Rangarajan has submitted its report.

Action completed.

A Committee of Secretaries, constituted by the Group ofMinisters (GoM) has made recommendation on pricing ofexisting urea units. After deliberations by the GoM, it wasdecided to place the report of the CoS on Nutrient BasedSubsidy in urea sector before the CCEA for consideration.CCEA note incorporating comments of all Ministries/Departments is being finalized.

Work in progress

the last four years. Areas of divergence havebeen narrowed. As a step towards the roll-outof GST, I propose to introduce the ConstitutionAmendment Bill in this session of Parliament.Work is also underway on drafting of the modellegislation for the Central and State GST.


6. 24. Among the other steps that are being taken forthe introduction of GST is the establishment ofa strong IT infrastructure. We have madesignificant progress on the GST Network(GSTN). The key business processes ofregistration, returns and payments are inadvanced stages of finalisation. The NationalSecurities Depository Limited (NSDL) has beenselected as technology partner for incubatingthe National Information Utility that will establishand operate the IT backbone for GST. By June2011, NSDL will set up a Pilot portal incollaboration with eleven States prior to its rollout across the country.


7. 25. Expenditure ReformsThe effective management of publicexpenditure is an integral part of the fiscalconsolidation process. Expenditure has to beoriented towards the production of public goodsand services. The extant classification of publicexpenditure between plan, non-plan, revenueand capital spending needs to be revisited. Thisis necessary as one recognises the importanceof service sector and the knowledge economyfor our development. A Committee under Dr.C. Rangarajan has been set up by the PlanningCommission to look into these issues.

[Nodal Ministry/Department:Planning Commission]

8. 26. SubsidiesDuring the year 2010-11, the Nutrient BasedSubsidy (NBS) policy was successfullyimplemented for all fertilisers except urea. Thepolicy has been well received by allstakeholders, and the availability of fertilisershas improved. The extension of the NBSregime to cover urea is under activeconsideration of the Government.

[Nodal Ministry/Department:D/o Fertilizers]

3




(To be read with para 28)

(To be read with para 27)

The Interim Report of the Task Force has been submittedon July 5, 2011.The recommendations of the Task Force on direct transferof cash subsidy for PDS Kerosene and LPG have beenaccorded ‘in-principle’ approval by the EGoM onunder-recoveries of oil marketing companies. Pilot Studieson LPG and Kerosene are underway. Depending on theoutcome of the pilot study, similar exercises will be initiatedin more States.As regards transfer of direct subsidy in fertilizers, theTaskforce has recommended a phased approach in3 phases.Work on phase-I is in progress, phase-II regarding directtransfer of subsidy to retailer is likely to be completed byKharif 2012 and phase-III regarding subsidy to farmers willbe taken up only after stabilization of phase-II.

Work in progress

To maintain the momentum of disinvestment, during2011-12, the CCEA has approved disinvestments in SAIL,ONGC, HCL, PFC, BHEL and NBCC. While the FPO ofPFC has been completed and the Government has garnered` 1144.56 crore, the other issues are likely to be completedby the end of the current financial year. Other cases will befirmed up in consultation with concerned Ministries andCentral Public Sector Enterprises.

Work in progress

The Fourth FDI policy document has been released onSeptember 30, 2011 liberalising the policy on FDI in

27. The Government provides subsidies, notablyon fuel and food grains, to enable the commonman to have access to these basic necessitiesat affordable prices. A significant proportion ofsubsidised fuel does not reach the targetedbeneficiaries and there is large scale diversionof subsidised kerosene oil. A recent tragic eventhas highlighted this practice. We havedeliberated for long the modalities ofimplementing such subsidies. The debate nowhas to make way for decision. To ensuregreater efficiency, cost effectiveness and betterdelivery for both kerosene and fertilisers, theGovernment will move towards direct transferof cash subsidy to people living below povertyline in a phased manner.

9. 28. A task force headed by Shri Nandan Nilekanihas been set-up to work out the modalities forthe proposed system of direct transfer ofsubsidy for kerosene, LPG and fertilisers. Theinterim report of the task force is expected byJune 2011. The system will be in place byMarch 2012.

[Nodal Ministries/Departments:M/o Petroleum & Natural Gas,D/o Fertilizers]

10. 30. As against a target of ` 40,000 crore, theGovernment will raise about ` 22,144 crorefrom disinvestment in 2010-11. A higher thananticipated realisation in non-tax revenues hasled us to reschedule some of the divestmentissues planned for the current year. I intend tomaintain the momentum on disinvestment in2011-12 by raising ` 40,000 crore. Let mereiterate here that the Government is committedto retain at least 51 per cent ownership andmanagement control of the CPSUs, as statedearlier in my Budget speech for 2009-10.

[Nodal Ministry/Department:D/o Disinvestment]

11. 31. Investment EnvironmentForeign Direct InvestmentTo make the FDI policy more user-friendly, allprior regulations and guidelines have been

4




single-brand retail trading, by raising the existing FDI cap,from 51 per cent to 100 per cent subject to specifiedconditions.

Action completed

SEBI has issued circular on August 9, 2011, permittingforeign investors [termed as Qualified Foreign Investors(QFIs)] to access Indian Mutual Funds (MFs) equityschemes and debt schemes investing in infrastructuresector.

Action completed

SEBI has issued a circular on March 31, 2011, raising thelimit for FII investment in long term Corporate Bonds issuedby the Companies in the infrastructure sector from USD 5Billion to USD 25 Billion.

Action completed

consolidated into one comprehensivedocument, which is reviewed every six months.The last review has been released inSeptember 2010. This has been done with thespecific intent of enhancing clarity andpredictability of our FDI policy to foreigninvestors. Discussions are underway to furtherliberalise the FDI policy.

[Nodal Ministry/Department:D/o Industrial Policy & Promotion]

12. 32. Foreign Institutional InvestorsCurrently, only FIIs and sub-accountsregistered with the SEBI and NRIs are allowedto invest in mutual fund schemes. To liberalisethe portfolio investment route, it has beendecided to permit SEBI registered MutualFunds to accept subscriptions from foreigninvestors who meet the KYC requirements forequity schemes. This would enable IndianMutual Funds to have direct access to foreigninvestors and widen the class of foreigninvestors in Indian equity market.


13. 33. To enhance the flow of funds to theinfrastructure sector, the FII l imit forinvestment in corporate bonds, with residualmaturity of over five years issued bycompanies in infrastructure sector, is beingraised by an additional limit of US Dollar 20billion taking the limit to US Dollar 25 billion.This will raise the total limit available to theFIIs for investment in corporate bonds to USDollar 40 bil l ion. Since most of theinfrastructure companies are organised in theform of SPVs, FIIs would also be permitted toinvest in unlisted bonds with a minimumlock-in period of three years. However, the FIIswill be allowed to trade amongst themselvesduring the lock-in period.


14. 34. Financial Sector legislative InitiativesThe financial sector reforms initiated during theearly 1990s have borne good results for theIndian economy. The UPA Government iscommitted to take this process further.Accordingly, I propose to move the followinglegislations in the financial sector:

5




The Bill, was introduced in Rajya Sabha on December 22,2008 and referred to Standing Committee on Finance. TheStanding Committee has since submitted its report, whichis being examined.

The LIC (Amendment) Act, 2011 has been notified onJanuary 13, 2012.

The Bill has been introduced in Lok Sabha onMarch 24, 2011.



The SBI (Subsidiary Banks Laws) Amendment Act, 2011has since been notified.

The Bill has been introduced in Lok Sabha on December12, 2011.

Action completed

RBI has released draft Guidelines for licensing of new Banksin the private sector seeking views/comments from differentstakeholders. Based on the feedback received, Guidelineswill be finalized and issued by RBI. Besides, the BankingLaws Amendment Bill, 2011 has been introduced in LokSabha on March 22, 2011.

Action completed

An amount of ` 1,000 crore has been transferred toNABARD. The amount available for capitalization of PSBsis ` 5,000 crore. An additional amount of ` 6,000 crorehas been provided in RE 2011-12.

Action completed

` 500 crore have been provided during 2011-12 and anamount of ` 110.83 crore has already been released to

(i) The Insurance Laws (Amendment)Bill, 2008;

(ii) The Life Insurance Corporation(Amendment) Bill, 2009;

(iii) The revised Pension Fund Regulatory andDevelopment Authority Bill, first introducedin 2005;

(iv) Banking Laws Amendment Bill, 2011;

(v) Bill on Factoring and Assignment ofReceivables;

(vi) The State Bank of India (Subsidiary BanksLaws) Amendment Bill, 2009; and

(vii) Bill to amend RDBFI Act 1993 andSARFAESI Act 2002.

[Nodal Ministry/Department:D/o Financial Services]

15. 35. In my last Budget speech, I had announcedthat Reserve Bank of India would considergiving some additional banking licences toprivate sector players. Accordingly, RBI issueda discussion paper in August, 2010, invitingfeedback from the public. RBI has proposedsome amendments in the Banking RegulationAct. I propose to bring suitable legislativeamendments in this regard in this session. RBIis planning to issue the guidelines for bankinglicences before the close of this financial year.


16. 36. Public Sector Bank RecapitalisationDuring the year 2010-11, the Government isproviding a sum of ` 20,157 crore for infusionin the Public Sector Banks to maintain Tier ICapital to Risk Weighted Asset Ratio (CRAR)at 8 per cent and increase government equityin some banks to 58 per cent. I propose toprovide a sum of ` 6,000 crore for the year2011-12 to enable Public Sector Banks tomaintain a minimum Tier I CRAR at 8 per cent.


17. 37. Recapitalisation of Regional Rural BanksAs a part of financial strengthening of RegionalRural Banks, an amount of ` 350 crore was

6




given to these banks during this year. I proposeto provide 500 crore during 2011-12 to enablethem maintain a CRAR of at least 9 per centas on March 31, 2012.


18. 38. Micro Finance InstitutionsThe Micro Finance Institutions (MFIs) haveemerged as an important means of financialinclusion. Creation of a dedicated fund forproviding equity to smaller MFIs would helpthem maintain growth and achieve scale andefficiency in operations. I propose to create inthe course of the year, “India MicrofinanceEquity Fund” of ` 100 crore with SIDBI. Toempower women and promote their Self HelpGroups (SHGs), I propose to create a“Women’s SHG’s Development Fund” with acorpus of ` 500 crore. The Committee set upby RBI to look into issues relating to microfinance sector in India has submitted its report.The Government is considering putting in placeappropriate framework to protect the interestsof small borrowers.


19. 39. Rural Infrastructure Development FundThe Rural Infrastructure Development Fund(RIDF) is an important instrument for routingbank funds for financing rural infrastructure.This is popular among State Governments. Ipropose to raise the corpus of RIDF XVII to` 18,000 crore in 2011-12 from 16,000 crorein the current year. The additional allocationwould be dedicated to creation of warehousingfacilities.


20. 40. Micro, Small and Medium EnterprisesMicro and Small enterprises play a crucial rolein furthering the objective of equitable andinclusive growth. Last year, ` 4,000 crore wasprovided to SIDBI for refinancing incrementallending by banks to these enterprises. For theyear 2011-12, I propose to provide ` 5,000crore to SIDBI for the same purpose out of theshortfall of banks on priority sector lendingtargets.


10 Regional Rural Banks.

Action completed

For setting up of India Micro Equity Fund (IMEF), guidelineshave been approved. Necessary budget provision has beenmade and sanction order is being issued.

Approval of the Cabinet to create a ‘Women’s SHG’sDevelopment Fund’ with a corpus of ` 500 crore is beingobtained.

Necessary action is underway for seeking approval of theCabinet on draft Micro Finance Institutions (Developmentand Regulation) Bill.

Action partially completed

Administrative order advising RBI to allocate funds for RIDFhave been issued on April 18, 2011. Operational guidelineshave been issued to NABARD on September 16, 2011.

Action completed

Orders have been issued to RBI on April 18, 2011 for makingnecessary allocations.

Action completed

7




21. 41. Handloom weavers have been facingeconomic stress. Consequently, many of themhave not been able to repay debts to handloomweaver cooperative societies which havebecome financially unviable. I propose toprovide ` 3,000 crore to NABARD, in phasesfor these cooperative societies. The initiativewould benefit 15,000 cooperative societies andabout 3 lakh handloom weavers. The details ofthe scheme would be worked out by the Ministryof Textiles in consultation with PlanningCommission.

[Nodal Ministries/Departments:D/o Textiles, Planning Commission]

22. 42. I am happy to report that the outstanding loansto minority communities which stood at 13 percent of total priority sector lending at the end oflast year have increased to 13.6 per cent in thecurrent year. I have directed the Public SectorBanks to achieve the target of 15 per cent atthe earliest.


23. 43. Housing Sector FinanceTo further stimulate growth in housing sector, Iam liberalising the existing scheme of interestsubvention of 1 per cent on housing loans byextending it to housing loan upto ` 15 lakhwhere the cost of the house does not exceed` 25 lakh from the present limit of 10 lakh and` 20 lakh respectively.


24. 44. On account of increase in prices of residentialproperties in urban areas, I propose to enhancethe existing housing loan limit from 20 lakh to` 25 lakh for dwelling units under priority sectorlending.


25. 45. To provide housing finance to targeted groupsin rural areas at competitive rates, I propose toenhance the provision under Rural HousingFund to 3,000 crore from the existing 2,000crore.


The Planning Commission has given ‘in-principle’ approvalon ‘Revival, Reform and Restructuring Package forHandloom Sector’. Guidelines for the package have beenissued on November 28, 2011.

Two meetings of National Implementation, Monitoring &Review Committee (NIRMC) have been held. The thirdmeeting is expected to be held shortly. An amount of ` 50crore has been allocated from Contingency Fund of India.

Work in progress

As per progress reports received from PSBs, theachievement of total outstanding loans to Minoritycommunities as on September 30, 2011 stood at 1,47,083crore, which works out to 14.50 per cent of the total prioritysector advances.


Necessary orders have been issued on December 15, 2011.

Action completed

Necessary circular has been issued by RBI on May 11, 2011.

Action completed

Orders have been issued to RBI on April 18, 2011 forallocation to Rural Housing Fund.

Action completed

8




26. 46. Credit enablement of Economically WeakerSections (EWS) and LIG households is aserious challenge. To address this issue, Ipropose to create a Mortgage Risk GuaranteeFund under Rajiv Awas Yojana. This wouldguarantee housing loans taken by EWS andLIG households and enhance their creditworthiness.

[Nodal Ministries/Departments:D/o Financial Services,M/o Housing & Urban Poverty Alleviation]

27. 47. To prevent frauds in loan cases involvingmultiple lending from different banks on thesame immovable property, the Governmenthas facilitated setting up of Central ElectronicRegistry under the SARFAESI Act, 2002. ThisRegistry will become operational by March 31,2011.


28. 48. Financial Sector Legislative ReformsCommissionIn pursuance of the announcement made inBudget 2010-11, the Government has set up aFinancial Sector Legislative ReformsCommission under the Chair of Justice B. N.Srikrishna. It would rewrite and streamline thefinancial sector laws, rules and regulations andbring them in harmony with the requirementsof a modern financial sector. The Commissionwill complete its work in 24 months.


29. 49. The Companies Bill introduced in theParliament in 2009 has been received from theParliamentary Standing Committee. Theproposed bill will be introduced in the LokSabha in the current session.

[Nodal Ministry/Department:M/o Corporate Affairs]

30. 51. In the Budget for 2010-11, I had delineated afour-pronged strategy covering agriculturalproduction, reduction in wastage of produce,credit support to farmers and a thrust to thefood processing sector. These initiatives havestarted showing results but there are otherissues in our food economy that requireattention. The recent spurt in food prices wasdriven by increase in the prices of items likefruits and vegetables, milk, meat, poultry and

To address the issue of credit enablement of EWS and LIGhouseholds, the details of establishing and operating theMortgage Risk Guarantee Fund have been finalized andthe same is being processed for obtaining the approval ofthe Cabinet.

Work in progress

The Central Electronic Registry has been operationalisedon March 31, 2011.

Action completed

The Commission has since been set up vide notificationdated March 24, 2011.

Action completed

The Companies Bill, 2011 has been introduced in Lok Sabhaon December 14, 2011.

Action completed

Out of the fund allocation of ` 7860 crore for 2011-12, anamount of ` 4185 crore has since been released underRKVY. In addition, 49.13 crore is available for UTs, whichis to be released by MHA. Release of funds is an ongoingprocess.

Action completed

9




fish, which account for more than 70 per centof the WPI basket for primary food items.Removal of production and distributionbottlenecks for these items will be the focus ofmy attention this year. I propose to makeallocations for these schemes under theongoing Rashtriya Krishi Vikas Yojana (RKVY)for an early take off. The total allocation ofRKVY is being increased from 6,755 crore in2010-11 to ` 7,860 crore in 2011-12.

[Nodal Ministry/Department:M/o Agriculture & Cooperation]

31. 52. Bringing Green Revolution to EasternRegionThe Green Revolution in Eastern Region iswaiting to happen. To realize the potential ofthe region, last year’s initiative will be continuedin 2011-12 with a further allocation of ` 400crore. The program would target theimprovement in the rice based cropping systemof Assam, West Bengal, Orissa, Bihar,Jharkhand, Eastern Uttar Pradesh andChhattisgarh.


32. 53. Integrated Development of 60,000 pulsesvillages in rainfed areasGovernment’s initiative on pulses has receiveda positive response from the farmers. As perthe second advance estimates, a recordproduction of 165 lakh tonnes of pulses isexpected this year as against 147 lakh tonneslast year. While consolidating these gains, wemust strive to attain self-sufficiency inproduction of pulses within next three years. Ipropose to provide an amount of 300 crore topromote 60,000 pulses villages in rainfed areasfor increasing crop productivity andstrengthening market linkages.


33. 54. Promotion of Oil PalmThe domestic production of edible oil meetsonly about 50 per cent demand. The gap insupply is met through imports, which are oftenat high prices due to the quantum of ourrequirement. Our recent interventions and goodrains are expected to result in a higher oilseedsproduction of 278 lakh tonnes in 2010-11 asagainst 249 lakh tonnes in 2009-10. To achievea major breakthrough, we have to pay specialattention to oil palm as it is one of the most

The Guidelines of the scheme were prepared and circulatedto concerned States for preparing Action Plans. All 7 Stateshave approved the projects. Out of allocated amount of` 400 crore, a sum of 198.31 crore has since released tothese States as 1

st installment. Release of funds is an

ongoing process.

Action completed

A set of Guidelines was prepared and circulated to the Statesfor preparation of Action Plans. State Level SanctioningCommittees (SLSCs) at each State level have approvedthe respective State plans. The allocation under thissub-scheme of RKVY is ` 300 crore and ` 276.12 crorehas so far been released to States. Release of funds is anongoing process.

Action completed

The Guidelines of the scheme were prepared and circulatedto the implementing states, namely, Andhra Pradesh,Chhattisgarh, Gujarat, Karnataka, Maharashtra, Mizoram,Orissa and Tamil Nadu. Based on the SLSC’s approval,funds to the tune of 274.40 crore have so far been releasedto States for implementation of the programme. Release offunds is an ongoing process.

Action completed

10




efficient oil crops. I propose to provide anamount of 300 crore to bring 60,000 hectaresunder oil palm plantation, by integrating thefarmers with the markets. The initiative will yieldabout 3 lakh metric tonnes of palm oil annuallyin 5 years.


34. 55. Initiative on Vegetable ClustersThe growing demand for vegetables has to bemet by a robust increase in the productivity andmarket linkage. An efficient supply chain, toprovide quality vegetables at competitive priceswill have to be established. I propose to providean amount of 300 crore for implementation ofvegetable initiative to set in motion a virtuouscycle of higher production and incomes for thefarmers. To begin with, this programme will belaunched near major urban centres.


35. 56. Nutri-cerealsWhile we ensure food for all, we must alsopromote balanced nutrition. Bajra, jowar, ragiand other millets are highly nutritious and areknown to possess several medicinal properties.The availability and consumption of theseNutri-cereals is, however, low and has beensteadily declining over recent years. Aprovision of ` 300 crore is being made topromote higher production of these cereals,upgrade their processing technologies andcreate awareness regarding their healthbenefits. This initiative would provide marketlinked production support to ten lakh milletfarmers in the arid and semi-arid regions of thecountry. The programme would be taken up in1000 compact blocks covering about 25,000villages. This will help improve nutritionalsecurity and increase feed and fodder supplyfor livestock.


36. 57. National Mission for Protein SupplementsThe consumption of foods rich in animal proteinand other nutrients has risen of late, with demandgrowing faster than production. The NationalMission for Protein Supplements is being

Following actions have been taken:

1. Operational guidelines formulated and circulated toStates.

2. Nodal Officers have already been appointed by theState Governments.

3. Allocation communicated and States requested toapprove projects by State Level SanctioningCommittees of RKVY before Kharif 2011.

4. Projects have been approved in 28 States/UTs andso far ` 207.55 crore have been released. Releaseof funds is an ongoing process.

Action completed

Scheme on Initiative for Nutrition Security through intensivemillet promotion has been formulated. The scheme aims todemonstrate the improved production and post-harvesttechnologies in integrated manner with visible impact tocatalyze increased production of millets in the country.Besides, increasing production of millets and processing/value addition techniques, is expected to generate consumerdemand for millet based food products. Action Plans of allStates have been approved by SLSCs and so far ` 274.66crore have been released to States. Release of funds is anongoing process.

Action completed

The detailed guidelines of National Mission for ProteinSupplements have been issued to the participating States,who were advised to prepare detailed project proposals attheir level and get the sanction of State Level SanctioningCommittee (SLSC) of the respective States.

11




launched in 2011-12 with an allocation of 300crore. It will take up activities to promote animalbased protein production through livestockdevelopment, dairy farming, piggery, goatrearing and fisheries in selected blocks.

[Nodal Ministry/Department:D/o Animal Husbandry, Dairying & Fisheries]

37. 58. Accelerated Fodder DevelopmentProgrammeAdequate availability of fodder is essential forsustained production of milk. It is necessary toaccelerate the production of fodder throughintensive promotion of technologies to ensureits availability throughout the year. I propose toprovide ` 300 crore for Accelerated FodderDevelopment Programme which will benefitfarmers in 25,000 villages.

[Nodal Ministry/Department:D/o Agriculture & Cooperation)

60. National Mission for Sustainable AgricultureWhile the need to maximize crop yields to meetthe growing demand for food grains is critical,we have to sustain agricultural productivity inthe long run. There has been deterioration insoil health due to removal of crop residues andindiscriminate use of chemical fertilizers, aidedby distorted prices.

38. 61. To address these issues, the Governmentproposes to promote organic farming methods,combining modern technology with traditionalfarming practices like green manuring,biological pest control and weed management.

[Nodal Ministry/Department:D/o Agriculture & Cooperation)

39. 62. Agriculture CreditTo get the best from their land, farmers needaccess to affordable credit. Banks have been

An amount of ` 226.73 crore has already been released toall the participating States.

Action completed

Guidelines for this Programme formulated and uploaded onDepartment of Agriculture & Cooperation’s website. 12States namely, A.P., Bihar, Chhattisgarh, Gujarat, Haryana,Karnataka, Madhya Pradesh, Maharashtra, Punjab,Rajasthan, Tamil Nadu and Uttar Pradesh have been selectedfor implementation of AFDP programme and state-wiseallocation communicated to States. 11 States have fullyprepared proposals and Chhattisgarh has prepared a partialproposal and got these approved by SLSCs of RKVY. So faran amount of 241.94 crore has been released to 12 States.Release of funds is an ongoing process.

Action completed

(To be read with para No. 61)

(To be read with para No. 60)

Organic Farming and Green Manuring have been includedas components under the National Mission for SustainableAgriculture (NMSA).

For controlling insect pests, diseases and weeds, whichcause 10-30% crop losses every year, a scheme titled“Strengthening and Modernization of Pest ManagementApproach in India” has been launched since, 1991-92 byadopting Integrated Pest Management (IPM) as main plankof plant protection strategy. Under the ambit of IPMprogramme, 31 Central IPM Centres were established in29 States/UTs. The mandate of these Centres is Pest/disease monitoring, production release of bio-controlagents/bio-pesticides, conservation of bio-control agentsand Human Resource Development in IPM by impartingtraining to Agriculture/Horticulture Extension Officers andfarmers at grass root level by Farmers Field Schools infarmers’ field.

Action completed

Administrative order communicating the target of flow ofagricultural credit has been issued to RBI, NABARD and all

12




consistently meeting the targets set for agriculturecredit flow in the past few years. For the year2011-12, I am raising the target of credit flow tothe farmers from ` 3,75,000 crore this year to `4,75,000 crore in 2011-12. Banks have beenasked to step up direct lending for agriculture andcredit to small and marginal farmers.


40. 63. The existing interest subvention scheme ofproviding short term crop loans to farmers at 7per cent interest will be continued during2011-12. In the last budget, I had provided anadditional 2 per cent interest subvention tothose farmers who repay their crop loans ontime. The response to this scheme has beengood. In order to provide further incentive tothese farmers, I propose to enhance theadditional subvention to 3 per cent in 2011-12.Thus, the effective rate of interest for suchfarmers will be 4 per cent per annum.


41. 64 In view of the enhanced target for flow ofagriculture credit, I propose to strengthenNABARD’s capital base by infusing ` 3000crore, in a phased manner, as Governmentequity. This would raise its paid-up capital to` 5,000 crore. To enable NABARD refinancethe short-term crop loans of the cooperativecredit institutions and RRBs at concessionalrates, I propose a contribution of 10,000 croreto NABARD’s Short-term Rural Credit Fund for2011-12 from the shortfall in priority sectorlending by Scheduled Commercial Banks.


42. 65. Mega Food ParksDespite growing production of vegetables andfruits, their availability is inadequate due tobottlenecks in retailing capacity. An estimated40 per cent of the fruit and vegetable productionin India goes waste due to lack of storage, coldchain and transport infrastructure. To addressthese issues, the Eleventh Plan target fornumber of Mega Food Parks was set at 30. Sofar, 15 such parks have been sanctioned.During 2011-12, approval is being given to setup 15 more Mega Food Parks.

[Nodal Ministry/Department:M/o Food Processing Industries]

Banks on April 18, 2011.

Action completed

Necessary orders have been issued to RBI, NABARD andPSBs on December 30, 2011.

Action completed

Cabinet has approved capital infusion of ` 3000 crore inNABARD in two trenches (` 1000 crore in 2011-12 and` 2000 crore in 2012-13). Funds for the year 2011-12 arebeing released.

For re-finance of short term crop loans of the cooperativecredit institutions and RRBs at concessional rates,administrative orders have been issued on April 18, 2011to RBI to allocate funds to NABARD.


CCEA in its meeting held on October 25, 2011 has approvedsetting up of 15 new Mega Food Parks in addition to 15ongoing projects.

Action completed

13




43. 66. Storage Capacity and Cold ChainsThe years 2008 to 2010 saw very high levelsof foodgrain procurement. On January 1,2011, the foodgrain stock in Central poolreached 470 lakh metric tonnes, 2.7 timeshigher than 174 lakh metric tonnes onJanuary 1, 2007. The storage capacity forsuch large quantities requires augmentation.Process to create new storage capacity of150 lakh metric tonnes through privateentrepreneurs and warehousingcorporations has been fast tracked. Decisionto create 20 lakh metric tonnes of storagecapaci ty under Publ ic EntrepreneursGuarantee (PEG) Scheme through modernsilos has been taken. While we will be ableto add about 2.6 lakh tonnes of capacity byMarch 2011, based on existing sanctions,the addition will reach 40 lakh tonnes byMarch 2012. During 2010-11, another 24lakh metric tonnes of storage capacity hasbeen created under the Rural GodownScheme.

[Nodal Ministry/Department:D/o Food & Public Distribution]

44. 67. Investment in cold storage projects is nowgaining momentum. During this year, 24cold storage projects with a capacity of 1.4lakh metric tonnes have been sanctionedunder National Horticulture Mission. Inaddition, 107 cold storage projects with acapacity of over 5 lakh metric tonnes havebeen approved by the National HorticultureBoard.


45. 68. To attract investment in this sector, henceforth,capital investment in the creation of modernstorage capacity will be eligible for viability gapfunding scheme of the Finance Ministry. It isalso proposed to recognize cold chains andpost-harvest storage as an infrastructuresub-sector.


46. 69. Agriculture Produce Marketing ActThe recent episode of inflation in vegetablesand fruits has exposed serious flaws in oursupply chains. The government regulatedmandis sometimes prevent retailers fromintegrating their enterprises with the farmers.There is need for the State Governments to

Under the Private Entrepreneurs Guarantee (PEG)Scheme, a capacity of about 151 lakh tonnes in 19 Stateshas been approved to be constructed through the PrivateEntrepreneurs, Central Warehousing Corporation (CWC)and State Warehousing Corporations (SWCs). About 88lakh tonnes capacity has already been finalized for creationby Private Entrepreneurs. CWC has been allotted 5.4lakh tonnes, SWCs have been allotted 14.6 lakh tonnes.Out of these, about 4 lakh tonnes has already beencompleted by CWC/SWCs. 32.70 lakh MT capacity islikely to be created by March 31, 2012. Besides, additionalstorage capacity of 2 MMT will be created through silos.Note for EGoM has been sent to Cabinet Secretariat forplacing it before EGoM.


Different Plan Schemes are being implemented throughNHM, NHB and HMNEH for development of cold storageinfrastructure in the country. Till January, 2012, 76 coldstorages with capacity of 3.55 lakh MT under NHM and 17cold storages with capacity of 2.49 lakh MT under NHBscheme have been created. Besides, 15 ControlledAtmosphere (CA) storage with a capacity of 0.56 lakh MThas been sanctioned under NHM and HMNEH Schemes.

Action completed

Necessary Notification has been issued on March 17, 2011.

Action completed

The Model Act, which has already been circulated to theState Governments for implementation, provides foralternative marketing choices to farmers in the form ofcontract farming, direct marketing and private marketingand encourages private investment in market infrastructureand supply chain. In order to incentivise reforms, scheme

14




review and enforce a reformed AgricultureProduce Marketing Act urgently.


47. 71. Our experience with PPP model for creation ofpublic sector assets in the country has beengood. We have recently launched the NationalCapacity Building Programme to enhancecapacities of public functionaries in identifying,conceptualising, structuring and managingPPPs. It is our endeavour to come up with acomprehensive policy that can be used by theCentre and the State Governments in furtherdeveloping public-private partnerships.


48. 72. Government established India InfrastructureFinance Company Limited (IIFCL) to providelong term financial assistance to infrastructureprojects. It is expected to achieve a cumulativedisbursement target of 20,000 crore by March31, 2011 and 25,000 crore by March 31, 2012.The take out financing scheme announced inthe Budget 2009-10 has been implemented andseven projects have been sanctioned with adebt of ` 1,500 crore. Another ` 5,000 crorewill be sanctioned during 2011-12.


49. 73. In order to give a boost to infrastructuredevelopment in railways, ports, housing andhighways development, I propose to allow taxfree bonds of ` 30,000 crore to be issued byvarious Government undertakings in the year2011-12. This includes Indian Railway FinanceCorporation 10,000 crore, National HighwayAuthority of India ` 10,000 crore, HUDCO` 5,000 crore and Ports ` 5,000 crore.


50. 74. To attract foreign funds for the infrastructurefinancing, I propose to create Special Vehicles

such as Development/ strengthening of AgriculturalMarketing Infrastructure, Grading & Standardization havebeen promoted where the States, which have adopted therequisite market reforms, can avail benefits from thescheme.

To expedite the implementation of market reforms, aCommittee of State Ministers-in-Charge of AgricultureMarketing of 10 States was set up, which has submitted itsreport on September 8, 2011. The same has been circulatedto States/UTs for implementation of its recommendations.

Action completed

The Draft Policy has been prepared and put on Departmentof Economic Affairs’ website on PPP for wider consultationswith the stakeholders. The feedback received is beinganalyzed.

Work in progress

IIFCL has achieved cumulative disbursement target of` 19,396 crore as on December 31, 2011. The target of` 25,000 crore is likely to be achieved by end of FY2011-12. IIFCL has sanctioned 20 projects for takeoutamount of ` 2,899 crore till December 31, 2011. To makethe scheme more attractive, certain modifications in theTakeout Finance Scheme have been approved by theGovernment. The target of ` 5,000 crore is likely to beachieved by March 31, 2012.

Action partially competed

Necessary notification has been issued on September 23,2011 by Department of Revenue allowing NHAI, IRFC,HUDCO and PFC (in place of Ports) to issue tax free bonds.

Action completed

SEBI has vide orders dated August 30, 2011 enabled settingup of IDFs as Mutual Fund Schemes. RBI has issued

15




in the form of notified infrastructure debt funds.I will come to the details in Part B of my speech.


51. 75. National Manufacturing PolicyFor sustained growth of GDP and productiveemployment for younger generation, it isimperative that the growth in manufacturingsector picks up. We expect to take the share ofmanufacturing in GDP from about 16 per centto 25 per cent over a period of ten years.Government will come out with a manufacturingpolicy, which will bring down the complianceburden on the industry through self-regulationand help make Indian industry globallycompetitive.

[Nodal Ministry/Department:D/o Industrial Policy & Promotion]

52. 76. To address the need for greater transparencyand accountability in procurement policy andallocation, pricing and utilisation of naturalresources, the Government has set up twocommittees. The recommendations will beavailable within three months.

[Nodal Ministry/Department:Cabinet Secretariat]

53. 77. A Group of Ministers has been set up toconsider all issues relating to reconciliation ofenvironmental concerns emanating fromvarious departmental activities including thoserelated to infrastructure and mining. This Groupwill also suggest changes in the existingstatutes, rules, regulations and guidelines andmake its recommendations in a time boundmanner.

[Nodal Ministry/Department:M/o Environment & Forests]

54. 78. The Indian automobile market is the secondfastest growing in the world and has shownnearly 30 per cent growth this year. World over,substantial investments are being made in thefield of hybrid and electric mobility. To providegreen and clean transportation for the masses,National Mission for Hybrid and ElectricVehicles will be launched in collaboration withall stakeholders.

[Nodal Ministry/Department:D/o Heavy Industries]

regulations on November 22, 2011 for setting up IDFs asNBFCs.

Action completed

The ‘National Manufacturing Policy’ has been approved bythe Cabinet on October 25, 2011.

Action completed

Both the Committees, viz. the Committee on Allocation ofNatural Resources as well as the Committee on PublicProcurement, have since submitted their Reports on June2, 2011 and June 13, 2011 respectively, which have beenconsidered by the Group of Ministers.

Action completed

Since a GoM has already been constituted to examine theissue of environmental clearance to mining projects inGo/No-Go areas, further efforts are being made inconsultation with Ministry of Finance and Cabinet Secretariatto implement the announcement expeditiously.

Work in progress

National Council for Electric Mobility (NCEM) and NationalBoard for Electric Mobility (NBEM) to expand electric mobilityand manufacture of electric vehicles (including hybrids) andtheir components in India have been set up. Three WorkingGroups on Demand & Supply, R & D and infrastructure havealso been constituted.

Action completed

16




55. 79. The funding of 15,260 modern low floor andsemi-low floor buses under JNNURM, besidesadding to passenger comfort, has transformedthe urban transport across India. In 2011-12,Delhi Metro Phase-III and Mumbai Metro LineIII are proposed to be taken up. The ongoingMetro projects of Bengaluru, Kolkata andChennai will be provided financial assistancefor speedy implementation.

[Nodal Ministries/Department:M/o Urban Development]

56. 80. Investment in fertilizer sector is capitalintensive and is considered high risk. It isproposed to include capital investment infertiliser production as an infrastructuresub-sector.


57. 81. ExportsThe Task Force on Transactions Cost set upby the Department of Commerce to identify andsuggest ways to achieve improvement inefficiency of our export processes, hascompleted its work. Twenty one suggestionsmade by the Task Force have already beenimplemented. Action on remaining two will betaken in next few months. This will mitigatetransactions cost by about ` 2,100 crore.

[Nodal Ministries/Departments:D/o Commerce, D/o Revenue]

58. 82. To quicken the clearance of the cargo byCustoms authorities and further modernise theCustoms administration, I propose to introduceself-assessment in Customs. Under this,importers and exporters will themselves assesstheir duty liabilities while filing their declarationsin the EDI system. The Department will verifysuch assessments on a selective system drivenbasis.


59. 83. There have been considerable difficulties in thesanction of refunds relating to tax paid onservices used for export of goods. I proposeto shortly introduce a scheme for the refund ofthese taxes on the lines of drawback of dutiesin a far more simplified and expeditious manner.A new scheme is also being introduced by

Delhi Metro Phase-III has already been approved byEmpowered Group of Ministers and sanctioned forimplementation on September 26, 2011. The work is inprogress.

Revised DPR for Mumbai Metro Line III has been receivedfrom Govt. of Maharashtra and is under appraisal byMinistry of Urban Development.

Ongoing Metro Rail Projects of Bengaluru, Kolkata andChennai have been sanctioned necessary funds in2011-12.


The harmonized list of infrastructure wherein capitalinvestment in fertilizers has been included as aninfrastructure sub-sector, is under active consideration.

Work in progress

The recommendation regarding filing of a single bond forall customs locations has been implemented. Necessarynotification has been issued on December 30, 2011 toprovide average rates of Service Tax refund ranging from0.03 per cent to 0.20 per cent of the FOB value of exportsfor wide range of goods exported from India. The refundwill be enabled by the Indian Customs EDI Systemresulting in amounts getting directly credited into theexporters’ Bank accounts within a few days ofconfirmation of export.

Action completed

The provision of self–assessment in custom has beenintroduced in the relevant Section’s of Customs Act, 1962by the Finance Act, 2011. Certain provisions have also beenintroduced for self-assessment for guidance of the tradeand the departmental officers.

Action completed

Necessary notification has been issued on December 30,2011 to provide average rates of Service Tax refundranging from 0.03 per cent to 0.20 per cent of the FOBvalue of exports for wide range of goods exported fromIndia. The refund will get directly credited into theexporters’ Bank accounts. Besides, necessarynotifications regarding SEZs have also been issued on

17




which units in SEZs will be able to obtaintax-free receipt of services wholly consumedwithin the zone and get their refunds in a mucheasier manner.


60. 84. Mega clusters have large employment andexport potential. I propose to extend the MegaCluster Scheme for development of leatherproducts. Seven mega leather clusters wouldbe set up during the year 2011-12. I alsopropose to include Jodhpur for the developmentof a handicraft mega cluster.

[Nodal Ministries/Departments:M/o Textiles, D/o Industrial Policy & Promotion]

61. 87. During the year, we have concluded discussionsfor 11 Tax Information Exchange Agreements(TIEAs) and 13 new Double Taxation AvoidanceAgreements (DTAAs) along with revision ofprovisions of 10 existing DTAAs. To effectivelyhandle the increase in tax information exchangeand transfer pricing issues, Foreign Tax Divisionof CBDT has been strengthened. A dedicatedCell for exchange of information is being set upto work on this agenda.


62. 89. The Ministry of Finance has commissioned astudy on unaccounted income and wealth heldwithin and outside our country. It would suggestmethods to tax and repatriate this illicit money.


63. 90. Trafficking in narcotic drugs is also a contributorto the generation of black money. To strengthencontrols over prevention of trafficking andimprove the management of narcotic drugs andpsychotropic substances, I propose toannounce a comprehensive national policy inthe near future.


64. 91. The UPA Government has engineered amajor directional change in public policy byits focus on inclusive development. Creationof legal entitlements for an individual’s rightto work has added to resi l ience anddynamism in our rural economy. The right to

March 1, 2011.Action completed

After clearance by EFC for setting up Mega Leather Clusters,CCEA approval has been sought.

To include Jodhpur for the development of a handicraft megacluster, preparation of Detailed Project Report is underprocess.

Work in progress

A software application, to be used by the dedicated Cell toeffectively handle the increase in tax information exchangeand transfer pricing issues, has been developed. The Cellfor exchange of information has been set up.

Action completed

MoU has been signed on March 21, 2011 between CBDTand 3 institutions for carrying out a study on unaccountedincome and wealth held within and outside the country. Thestudy will be completed within a period of 18 months fromthe date of MoU.

Action completed

A National Policy on Narcotic Drugs and PsychotropicSubstances (NDPS) has been approved by the Governmenton January 12, 2012.

Action completed

The National Food Security Bill, 2011 has been introducedin the Lok Sabha on December 22, 2011.

Action completed

18




information and the right to education areeffective tools of empowerment for removingsocial imbalances. The country has carriedfor long enough the burden of hunger andmalnutrition. After detailed consultations withal l stakeholders including StateGovernments, we are close to the finalisationof National Food Security Bill (NFSB) whichwill be introduced in the Parliament duringthe course of this year. The proposedallocation of 1,60,887 crore for social sectorin 2011-12 is an increase of 17 per cent overcurrent year. It amounts to 36.4 per cent ofthe total plan allocation.

[Nodal Ministry/Department:D/o Food & Public Distribution]

65. 92. Bharat NirmanThe UPA Government’s flagship programmeshave been the principal instrument forimplementing its agenda for inclusivedevelopment. For the year 2011-12, BharatNirman, which includes Pradhan Mantri GramSadak Yojna (PMGSY), Accelerated IrrigationBenefit Programme, Rajiv Gandhi GrameenVidyutikaran Yojna, Indira Awas Yojna,National Rural Drinking Water Programme andRural telephony have together been allocated` 58,000 crore. This is an increase of 10,000crore from the current year. A plan has beenfinalised to provide Rural BroadbandConnectivity to all 2,50,000 Panchayats in thecountry in three years.

[Nodal Ministries/Departments:D/o Rural Development,D/o Telecommunications]

66. 93. MGNREGAIn pursuance of my earlier budgetannouncement to provide a real wage of 100per day, the Government has decided to indexthe wage rates notified under the MGNREGAto the Consumer Price Index for AgriculturalLabour. The enhanced wage rates have beennotified by the Ministry of Rural Developmenton January 14, 2011. It has resulted insignificant enhancement of wages for thebeneficiaries across the country.

[Nodal Ministry/Department:D/o Rural Development]

67. 94. The Anganwadi workers and Anganwadihelpers are the backbone of Integrated ChildDevelopment Services Scheme. I am happyto announce an increase in the remuneration

Out of 62,302 villages, Village Public Telephones (VPTs)have been provided in 62,046 villages. VPTs in Remaining256 villages will be provided on Digital Satellite PhoneTerminals (DSPTs) for which procurement of DSPTs byBSNL is under progress. Rural tele-density as of December,2011 is 37.52%. As of January, 2012, broadband coveragehas been provided to 1,43,714 Panchayats.


A Committee has been set up to look into the issue. Itsreport is still awaited.

Work in progress

Letters have been issued on July 11, 2011 to all States/UTs for enhancement of honoraria of AWWs and AWHs.

Action completed

19




of Anganwadi workers from 1,500 per monthto 3,000 per month and for Anganwadi helpersfrom ` 750 per month to ` 1,500 per month.This will be effective from April 1, 2011. Around22 lakh Anganwadi workers and helpers willbenefit from the increase.

[Nodal Ministry/Department:M/o Women & Child Development]

68. 96. EducationOur “demographic dividend” of a relativelyyounger population compared to developedcountries is as much of an opportunity as it is achallenge. Over 70 per cent of Indians will beof working age in 2025. In this context,universalising access to secondary education,increasing the percentage of our scholars inhigher education and providing skill training isnecessary. For education, I propose anallocation of ` 52,057 crore, which is anincrease of 24 per cent over the current year.

[Nodal Ministries/Departments:D/o School Education & Literacy, D/o HigherEducation]

69. 97. Sarva Shiksha AbhiyanThe existing operational norms of SarvaShiksha Abhiyan have been revised toimplement the right of children to free andcompulsory education which has come intoforce with effect from April 1, 2010. For the year2011-12, I propose to allocate ` 21,000 crorewhich is 40 per cent higher than 15,000 croreallocated in the Budget for 2010-11. A revisedCentrally Sponsored Scheme“Vocationalisation of Secondary Education” willbe implemented from 2011-12 to improve theemployability of our youth.

[Nodal Ministry/Department:D/o School Education & Literacy]

70. 98. Empowerment flows from Education. While theScheduled Castes and Scheduled Tribes hadaccess to post matric scholarships, there wasso far a lack of pre matric scholarship scheme.In 2011-12, I propose to introduce a scholarshipscheme for needy students belonging to theScheduled Castes and Scheduled Tribesstudying in classes ninth and tenth. It wouldbenefit about 40 lakh Scheduled Caste andScheduled Tribe students.

[Nodal Ministries/Departments:M/o Social Justice & Empowerment,M/o Tribal Affairs]

The requisite allocation has been made.

Action completed

Annual Work Plans and Budgets (AWP&B) of all States/UTs for 2011-12 have been completed. So far 19,53,525lakhs (93% of BE) has been released to States/UTsimplementing societies for Sarva Shiksha Abhiyan. ForVocationalisation of Secondary Education, so far ` 4.97crore has been released.

Action completed

The scholarship scheme has received ‘in-principle’ approvalof the Planning Commission.

Proposal relating to introduction of new centrally sponsoredPre-matric scholarship scheme w.e.f. January 1, 2012 forSC students has been recommended by EFC. Guidelinesfor the scheme are being finalized in consultation with thePlanning Commission.

Regarding introduction of new centrally sponsoredPre-matric scholarship scheme for ST students, EFC memois under consideration.

Work in progress

20




71. 99. National Knowledge NetworkApproved in March 2010, the NationalKnowledge Network (NKN) will link 1500Institutes of Higher Learning and Researchthrough an optical fibre backbone. During thecurrent year, 190 Institutes will be connectedto NKN. Since the core will be ready by March2011, the connectivity to all 1500 institutionswill be provided by March 2012.

[Nodal Ministry/Department:D/o Information Technology]

72. 100. InnovationsTo move beyond the formal R&D paradigm, aNational Innovation Council under Shri SamPitroda has been set up to prepare a roadmapfor innovations in India. The process of settingup State Innovation Councils in each State andSectoral Innovation Councils aligned to CentralMinistries is underway.

[Nodal Ministry/Department:Planning Commission ]

73. 101. The Government has been providing specialgrants to recognise excellence in universitiesand academic institutions. In the course of2011-12, I propose to provide:

• ` 50 crore each to upcoming centres ofAligarh Muslim University at Murshidabadin West Bengal and Malappuram in Kerala;

• ` 100 crore as one-time grant to the KeralaVeterinary and Animal Sciences Universityat Pookode, Kerala;

• ` 10 crore each for setting up Kolkata andAllahabad Centres of Mahatma GandhiAntarrashtriya Hindi Vishwavidyalaya,Wardha;

• ` 200 crore as one time grant to IIT,Kharagpur;

• ` 20 crore for Rajiv Gandhi NationalInstitute of Youth Development,Sriperumbudur, Tamil Nadu

• ` 20 crore for IIM, Kolkata, to set up itsFinancial Research and TradingLaboratory;

• ` 200 crore for Maulana Azad EducationFoundation;

A total of 639 links to institutions have been commissionedand made operational. This includes 172 links providedunder National Mission on Education through ICT of MHRD,which have now migrated to NKN. 82 core links have beenestablished between various NIC/NKN Points of Presence.

Work in progress

21 States have constituted the States Innovation Councils.Several other States have given their commitment toconstitute them at the earliest. 18 Ministries/21 Sectors havealso constituted the Sectoral Innovation Councils.

Action completed

Action is underway to release the grants.

Action is underway to release the grant.




Necessary Grant-in-aid has been released.

Special grant of 150 crore has been released. Remainingamount will be released upon CCEA approval.

21




• ` 10 crore for Centre for DevelopmentEconomics and Ratan Tata Library, DelhiSchool of Economics, Delhi; and

• ` 10 crore for Madras School of Economics.

[Nodal Ministries/Departments:D/o Higher Education,D/o Animal Husbandry, Dairying & Fisheries,M/o Minority Affairs,M/o Youth Affairs & Sports,D/o Economic Affairs]

74. 102. Skill DevelopmentI am happy to inform the House that NationalSkill Development Council (NSDC) is well oncourse to achieve its mandate of creation of 15crore skilled workforce two years ahead of2022, the stipulated target year. It has alreadysanctioned 26 projects with a total funding of` 658 crore. These projects alone are expectedto create more than 4 crore skilled workforceover the next ten years. In the current year, skilltraining has so far been provided to 20,000persons. Of these, 75 per cent have foundplacements. I will provide an additional ` 500crore to the National Skill Development Fundduring the next year.


75. 103. National celebrations of 150th Birth Anniversaryof Gurudev Rabindranath Tagore willcommence from May 7, 2011 in New Delhi.Important events will be held in severalcountries in Europe, America and Asia. A seriesof events are also proposed to be organizedunder the aegis of joint India-BangladeshCelebrations Committee. An internationalaward with prize money of ` 1 crore is beinginstituted for promoting values of UniversalBrotherhood in the memory of GurudevRabindranath Tagore.

[Nodal Ministry/Department:M/o Culture]

76. 104. HealthFor health, I propose to step up the planallocations in 2011-12 by 20 per cent to` 26,760 crore. The Rashtriya Swasthya BimaYojana has emerged as an effective instrumentfor providing a basic health cover to poor andmarginal workers. It is now being extended toMGNREGA beneficiaries, beedi workers andothers. In 2011-12, I propose to further extendthis scheme to cover unorganized sector

Administrative sanction orders are being issued.

Necessary Grant-in-aid has been released.


A sum of 500 crore for National Skills Development Fundhas been provided.

Action completed

A proposal for institution of an international award with prizemoney of ` 1 crore for promoting values of UniversalBrotherhood in the memory of Gurudev RabindranathTagore has been approved.

Action completed

A Task Force has been constituted to work out the detailsand to recommend to the Government, the process andprocedures to be adopted for extension of RSBY tounorganized sector workers in hazardous mining andassociated industries like slate and slate pencil, dolomite,mica and asbestos etc. The matter is under activeconsideration.

Work in progress

22




workers in hazardous mining and associatedindustries like slate and slate pencil, dolomite,mica and asbestos etc.

[Nodal Ministry/Department:M/o Labour & Employment ]

77. 105. Financial InclusionIn my last budget speech I had advised Banksto provide banking facilities to habitationshaving a population of over 2000 by March,2012. The Banks have identified about 73,000such habitations for providing banking facilitiesusing appropriate technologies. A multi-mediacampaign, “Swabhimaan”, has been launchedto inform, educate and motivate people to openbank accounts. During this year, banks willcover 20,000 villages. Remaining will becovered during 2011-12.


78. 106. Unorganised sectorI had announced a co-contributory pensionscheme “Swavalamban” in the Budget 2010-11. This scheme has been welcomed by theworkers in unorganised sector. Over 4 lakhapplications have already been received. Onthe basis of the feedback received, I amrelaxing the exit norms whereby a subscriberunder Swavalamban will be allowed exit at theage of 50 years instead of 60 years, or aminimum tenure of 20 years, whichever is later.I also propose to extend the benefit ofGovernment contribution from three to fiveyears for all subscribers of Swavalamban whoenroll during 2010-11 and 2011-12. Anestimated 20 lakh beneficiaries will join thescheme by March 2012.


79. 107. Under the on-going Indira Gandhi National OldAge Pension Scheme for BPL beneficiaries, theeligibility for pension is proposed to be reducedfrom 65 years at present to 60 years. Further,for those who are 80 years and above, thepension amount is being raised from ` 200 atpresent to ` 500 per month.

[Nodal Ministry/Department:D/o Rural Development]

About 49,000 villages have been covered under thiscampaign as on November 30, 2011. All Banks and theconcerned State Governments have been advised to ensurethat the remaining villages are covered by March, 2012.

Work in progress

Suitable amendments to operational guidelines, for theSwavalamban scheme to give the benefit of early exit andlonger period of contribution from the Government are beingformulated in consultation with the Interim Pension FundRegulatory and Development Authority.

Till January 2012, the actual coverage under“Swavalamban” has been 1,62,614. All Public Sector Bankshave been directed to enroll beneficiaries under the scheme.Besides, LIC has been made an Aggregator to take upenrollment.

Work in progress

Necessary notification has been issued by Department ofRural Development on June 30, 2011.

Action completed

23




80. 108. Environment and Climate ChangeForestsProtection and regeneration of forests has greatecological, economic and social value. OurGovernment has launched an ambitious ten-year Green India mission. I propose to allocate` 200 crore from the National Clean EnergyFund to begin its implementation in 2011-12.


81. 109. Environmental ManagementEnvironmental pollution has emerged as aserious public health concern across thecountry. I propose to allocate 200 crore fromthe National Clean Energy Fund as Centre’scontribution in 2011-12 for launchingenvironmental remediation programmes.


82. 110. Cleaning of Rivers and LakesA number of projects under the National GangaRiver Basin Authority have been approved in2010-11. This momentum will be furtherstepped up. There are many rivers and lakesof cultural and historical significance that needto be cleaned. In the course of the year 2011-12, I propose to provide a special allocation of` 200 crore for the clean-up of some importantlakes and rivers other than the Ganga.


83. 112. The Government’s special support to Jammu& Kashmir is anchored in 28,000 crore PrimeMinister’s Reconstruction Plan. In addition, forthe current year, about 8,000 crore has beenprovided for the State’s development needs. ATask Force to assess infrastructure needs thatcan be addressed within a time horizon of 24months for Ladakh and Jammu regions of theState has recommended projects amountingto ` 416 crore and ` 497 crore, respectively. Iam providing 100 crore for Ladakh and 150crore for Jammu for these identified projects in2011-12.

[Nodal Ministry/Department:M/o Home Affairs]

84. 114. To address problems related to Left WingExtremism affected districts, an IntegratedAction Plan (IAP) for 60 selected tribal andbackward districts has been launched in

So far ` 50 crore has been sanctioned for Green IndiaMission (GIM) for protection & regeneration of forests fromNational Clean Energy Fund for the Financial Year2011-12.

Besides, a Steering Committee for GIM has been constitutedfor taking care of further follow up action for the activitiesunder GIM.

Work in progress

The 1st Meeting of Project Steering Committee was held on

November 9, 2011 with concerned States followed by aMeeting with State Governments on November 30, 2011for finalization of implementation aspect of the scheme. Sofar, for the year 2011-12, ` 10 crore have been sanctionedfrom NCEF.

Work in progress

Under National River Conservation Programme, DPRs werecalled from the State Governments. DPRs received forconservation of river Sabarmati (Phase-II) at Ahmedabad,river Musi (Phase-II) at Hyderabad and river Yamuna atPanipat & Sonepat were immediately processed/ appraisedor are in advanced stage of processing/appraisal. Theimplementation of the projects identified would span about3 years.

Work in progress

Funds to the tune of ` 250 crore have been sanctioned toGovernment of J&K on September 6, 2011.

Action completed

An amount of 2630 crore has been released to 60 districtoriginally covered under the programme. In addition, anamount of ` 540 crore @ ` 30 crore per district has beenreleased on December 29, 2011 for 18 districts which were

24




December 2010. The scheme is beingimplemented with 100 per cent block grant of` 25 crore and 30 crore per district during theyears 2010-11 and 2011-12, respectively. Theallocated funds are placed at the disposal ofthe district level committees who in consultationwith local MPs will have the flexibility to spendthe amount on development schemes as perthe local needs.

[Nodal Ministries/Departments:Planning Commission,M/o Home Affairs]

85. 115. In recognition of the sacrifices made by CentralPara-military Forces engaged in tackling LeftWing Extremism, a lump sum ex-gratiacompensation of ` 9 lakh for 100 per centdisability will now be granted to personnel ofthe Defence and para-military forces who aredischarged from service on medical groundson account of disability attributable to oraggravated in government service. Forpersonnel with disability ranging from 20 to 99per cent, a proportionate amount would begiven.

[Nodal Ministries/Departments:D/o Ex-Servicemen Welfare,M/o Home Affairs]

86. 117. In order to speed up delivery of justice, the Planprovision for Department of Justice for2011-12 has been increased three-fold to` 1,000 crore. The enhanced provision will helpin building judicial infrastructure and the projecton E-courts.

[Nodal Ministry/Department:D/o Justice]

87. 119. In response to the overwhelming demand forenumeration of castes other than ScheduledCastes and Scheduled Tribes in Census 2011,it has been decided to canvass ‘caste’ as aseparate time bound exercise. This exercisewill start in June 2011 and will be completedby 30th September 2011.

[Nodal Ministry/Department:M/o Home Affairs]

added to the programme on December 7, 2011. TheGovernment has also approved continuation of the IAP inthe present form for the year 2012-13. The implementationof the IAP is being monitored/reviewed through regular videoconferences with States/Districts for taking immediateremedial measures at the ground level. The progress isbeing also uploaded on the MIS.

Action completed

Necessary orders in respect of Central Para-Military Forceshave been issued by Ministry of Home Affairs on April 21,2011.

Similar orders regarding payment of ex-gratia lumpsumcompensation to Defence Service Officers and PBORs,who are invalided out of service on account of disabilityattributable to Military Service, have been issued onDecember 26, 2011 by Ministry of Defence.

Action completed

Necessary allocation of funds to the tune of ` 1000 crorehas been made.

Action completed

Socio-Economic and Caste Census (SECC) has beenlaunched in 26 States/UTs. It is already over in UTs of Dadra& Nagar Haveli, Chandigarh and Puduchhery and in theState of Tripura. It is in progress in the States/UTs of Daman& Diu, Chattisgarh, Punjab, Himachal Pradesh, AndhraPradesh, Goa, Haryana, Maharashtra, Rajasthan, Sikkim,Arunachal Pradesh, Meghalaya, Karnataka, Jammu &Kashmir, Assam, Bihar, Madhya Pradesh, Gujarat, Delhi,Uttrakhand, Nagaland and Odisha. Out of total of 16,16,457Enumeration Blocks (EBs) in the above 26 States/UTs, thefield survey has been completed in about 4,93,647 EBs.

Work in progress

25




88. 120. UID MissionThe UID Mission has taken off and Aadhaarnumbers are being generated in large numbers.So far 20 lakh Aadhaar numbers have beengiven and from 1st October 2011, ten lakhnumbers will be generated per day. The stageis now set for realising the potential of Aadhaarfor improving service delivery, accountabilityand transparency in governance of variousschemes.

[Nodal Ministry/Department:Planning Commission]

89. 121. IT InitiativesThe backbone of an efficient tax administrationis a robust IT infrastructure and its deploymentfor enhanced taxpayer services. Towards thisobjective, both the Central Boards of DirectTaxes (CBDT) and Excise and Customs(CBEC) have put in place the followingmeasures:• The on-line preparation and e-filing of

income tax returns, e-payment of taxesthrough 32 agency banks, ECS facility forelectronic clearing of refunds directly intaxpayers’ bank accounts and electronicfiling of TDS returns are now availablethroughout the country. These measureshave empowered taxpayers to meet theirtax obligations without visiting an incometax office.

• The Centralized Processing Centre (CPC)at Bengaluru has increased its dailyprocessing capacity from 20,000 to 1.5 lakhreturns in 2010-11. This project has won aGold Award for e-Governance in 2011.Two more CPCs will become operationalin Manesar and Pune by May 2011 and afourth CPC will come up in Kolkata in 2011-12.

• With the completion of its IT ConsolidationProject, CBEC can now centrally host itskey applications in Customs, CentralExcise and Service Tax. The Customs EDIsystem now covers 92 locations across thecountry. CBEC’s e-Commerce portalICEGATE, has also been conferred a GoldAward for e-Governance.

• The ‘Sevottam’ concept has been adoptedby both Boards. The three pilot projects ofAaykar Seva Kendras (ASKs) under CBDThave come of age. CBDT will commissioneight more such centres this year. In2011-12, another fifty ASKs will be set up

12.1 crore Aadhar numbers have been generated as onJanuary 31, 2012 out of which 2.52 crore (at an average of8 lakhs numbers per day) were generated in January 2012.UIDAI is confident of scaling up of the numbers further andestablish a consistent generation of 10 lakh plus numbersper day.

Action partially competed

The work relating to setting up of CPC at Manesar and Puneis under progress. The tendering for CPC Kolkata can beinitiated only after completion of the Pune & Manesartendering process. Delay in setting up of CPCs at theseplaces was on account of fulfillment of required procedures.

The IT consolidation project has been implemented. TheCentral Excise and Service Tax application (ACES) is portedin the national Data Centre and implemented in all 104Central Excise and Service Tax Commissionrates. Theupgraded Customs application (ICES 105) is also ported inthe National Data Centre and has been implemented in 94locations.

50 ASKs under CBDT are likely to become functional byMarch 31, 2012.

One more formation under CBEC has been granted‘Sevottam’ certificate by the Bureau of Indian Standardstaking the total number to 5. In phase-II, Sevottam is being

26




across the country. CBEC has alsolaunched a similar initiative and four of theirpilot projects have been commissioned.

• The electronic filing of Tax Deduction atSource (TDS) statements has stabilized.The Board shall soon notify a category ofsalaried taxpayers who will not be requiredto file a return of income as their tax liabilityhas been discharged by their employerthrough deduction at source.

• CBDT will provide a separate web-basedfacility to enable a direct, stand-aloneinterface for taxpayers with the Income TaxDepartment so that they can report andtrack the resolution of their refunds andcredit for prepaid taxes.


90. 122. Mission Mode Projects for computerization ofCommercial Taxes in States that I announcedin my last Budget, will allow States to align withthe roll out of GST. Funds have been releasedfor 31 projects received from the States andUnion Territories. Most of the States and UTshave already enabled the facility of dealersmaking electronic payments. A number ofStates have already started acceptingElectronic Tax Returns and issuing formsrequired for inter-state trade.


91. 123. With the development of the economy, the needto review the provisions of the Indian StampAct, 1899 has been felt over the years. Ipropose to introduce a Bill shortly to amendthe Indian Stamp Act.


92. 124. Five years ago, we took an initiative to introducea modern and people-friendly e-stampingfacility in the country. Only six States haveintroduced this system so far. I propose tolaunch a new scheme with an outlay of ` 300crore to provide assistance to States tomodernise their stamp and registrationadministration and roll out e-stamping in all thedistricts in the next three years.


implemented in 20 other formations.

Notification has been issued on June 23, 2011 for exemptinga category of salaried tax payers from filing of IT Returns.

The functionality has been developed and undergoingtesting and will be made live for the public during currentfinancial year.


22 States/UTs have successfully started e-payment facilityto their dealers. 21 States/UTs have successfully startede-Return filing facilities for their dealers. 13 States/UTs havecollected more than 80% of PAN details from their dealersand remaining States are collecting it on priority. Most ofthe States/UTs have made PAN compulsory for filling return.In 5 States/UTs e-refund is also operational.

Action completed

The legal vetting of the draft Bill is in progress.

Work in progress

To discuss and finalise guidelines of the scheme to provideassistance to States to modernize their stamp andregistration administration and roll out e-stamping in all thedistricts in the next three years, a meeting was held withSates. Accordingly, the Committee on Non-planExpenditure is being requested to approve the scheme.

Work in progress

27




93. 125. I propose to introduce a new simplified returnform ‘Sugam’ to reduce the compliance burdenof small taxpayers who fall within the scope ofpresumptive taxation.


94. 126. The increase in scope of cases admitted bythe Settlement Commissions has providedrelief to several taxpayers. This has alsoincreased the workload of the Commission. Tofast track the disposal of cases, three moreBenches of the Commission are being set up.


95. 128. CorruptionA Group of Ministers has been constituted toconsider measures for tackling corruption. TheGroup has been tasked with addressing issuesrelating to State funding of elections, speedierprocessing of corruption cases of publicservants, transparency in public procurementand contracts, discretionary powers of Centralministers and competitive system for exploitingnatural resources. The Group will make itsrecommendations in a time bound manner.

[Nodal Ministry/Department:D/o Personnel & Training]

96. 129. Performance Monitoring and EvaluationSystemPursuant to the recommendations of SecondAdministrative Reforms Commission, theGovernment has set up a Performance Monitoringand Evaluation System (PMES) to assess theeffectiveness of Government departments in theirmandated functions. It involves preparation of aResults Framework Document (RFD) by eachdepartment, highlighting its objectives andpriorities for the financial year and achievementsagainst pre-specified targets at the end of theyear. This document would be available for publicinformation on the departmental websites. In thefirst phase, 62 departments have been coveredunder PMES.

[Nodal Ministry/Department:Performance Management Division,Cabinet Secretariat]

97. 130. TAGUPIn pursuance of the announcement made in theBudget 2010-11, I had set up a TechnologyAdvisory Group for Unique Projects (TAGUP).

A new simplified return form ‘Sugam’ has been notified onApril 5, 2011. The same is available for use by the smalltaxpayers, who fall within the scope of the presumptivetaxation.

Action completed

Three Additional Benches of Income Tax SettlementCommission have been set up vide Government order datedDecember 5, 2011.

Action completed

The GoM has already submitted its 1st Report in April, 2011,

which has been accepted by the Government with minormodifications. Action has already been initiated forimplementing the accepted recommendations. In a fewcases, instructions have already been issued and in theremaining cases, necessary action is under way foramendments in statutory rules. The GoM has not yetsubmitted its final recommendations.

Work in progress

Presently 78 central Government Ministries/Departmentsand some 800 Responsibility Centres (attached, subordinateoffices and autonomous bodies) under them are coveredby the PMES/RFD policy. In addition, RFD policy has beenadopted by the Governments of Kerala, Maharashtra,Karnataka, Punjab, Himachal Pradesh and Assam. Manyother state Governments have expressed interest inadopting the PMES/ RFD policy. The achievements of theMinistries/Departments vis-a-vis targets laid down in theirrespective RFDs for the years 2009-10- and 2010-11 havealso been evaluated and reviewed by an independent groupof experts.

Action completed

To discuss and implement the recommendations ofTechnology Advisory Group for Unique Projects, a HighLevel Coordination Committee (HLCC) has been constituted

28




The Group has submitted its report and itsrecommendations have been accepted inprinciple. The modalities of implementation arebeing worked out.


98. 131. Indian Rupee now has a new symbol which hasbeen notified for use by the Central and StateGovernments, business entities and the generalpublic. A new series of coins carrying thissymbol will be issued shortly. The Governmenthas approached Unicode Standards Authorityfor inclusion of the symbol in internationalstandards.


99. 144. To attract foreign funds for financing ofinfrastructure, I propose to:

• create special vehicles in the form ofnotified infrastructure debt funds;

• subject interest payment on the borrowingsof these funds to a reduced withholding taxrate of 5 per cent instead of the current rateof 20 per cent;

• exempt the income of the fund from tax.


100. 147. In order to give a boost to production in theagriculture sector, I propose to extend thebenefit of investment linked deduction tobusinesses engaged in the production offertilisers.


101. 148. Considering the importance of housing, I alsopropose investment linked deduction tobusinesses which develop affordable housingunder a notified scheme.


102. 149. In this Decade of Innovation, I enhanced theweighted deduction on payments made to

under the Chairmanship of Finance Secretary to carryforward the recommendations made by TAGUP. Themodalities of implementation are being worked out by HLCC.

Work in progress

New series of coins has been introduced with new rupeesymbol ‘`’. The ‘`’ symbol has been encoded in UnicodeStandard and National Standard ISCII.

Action completed

Finance Act, 2011 has inserted a new sub-section 10(47),effective from June 1, 2011, in the Income-Tax Act, 1961,which provides that income of Infrastructure Debt Fund,set up in accordance with the prescribed guidelines, shallbe exempt from taxation with withholding rate of 5% inrespect of interest paid to non-resident investors. Suitablestructure for the proposed Infrastructure Debt Fund has beenfinalized.

Action completed

Finance Act, 2011 has amended section 35AD of the IncomeTax Act to include the specified business of production offertilizers in India for the purpose of investment-linkeddeduction.

Action completed

Guidelines in respect of investment linked deduction foraffordable housing, under section 35AD of the Income TaxAct, have been notified on January 2, 2012.

Action completed

Weighted deduction on payments made to NationalLaboratories, Universities and Institutes of technologies for

29




National Laboratories, universities andInstitutes of technology, for scientific research,to 175 per cent in the last budget. I propose tofurther enhance this to 200 per cent.


103. 150. In order to strengthen our system of collectionof information from foreign tax jurisdictions, Ipropose to provide a toolbox of countermeasures to discourage transactions withentities located in non-cooperative jurisdictionsas may be notified by the Government.


104. 177. Other ProposalsWorks of art and antiquities are exempt fromcustoms duties when imported for exhibition ina public museum or national institution. Inrecent years, many organisations have joinedthe cause of promoting and popularising bothtraditional and contemporary art. Some of themhave been active in locating heritage works ofIndian art and antiquities in foreign countriesand bringing them back home. To encouragesuch initiatives, I propose to expand the scopeof this exemption for works of art and antiquitiesto also apply to imports for exhibition or display,in private art galleries or similar premises thatare open to the general public. Department ofCulture will notify details of the schemeseparately.

[Nodal Ministry/Department:M/o Culture]

105. 184. The actual collections of Service Tax do notreflect the full potential of this sector. Whileretaining the standard rate of service tax at 10per cent, I seek to achieve a closer fit betweenthe present service tax regime and its GSTsuccessor by:

• Bringing in a few new services into the taxnet to expand the tax base while ensuringthat the impact is predominantly onsections of society that have the ability topay;

• Suitably expanding or rationalizing thescope of existing service categories;

• Rationalizing certain provisions relating toimport of services and valuation;

scientific research has been enhanced to 200 percent bythe Finance Act, 2011 w.e.f. April 1, 2012.

Action completed

Finance Act, 2011 has inserted a new section 94A in theIncome Tax Act to provide toolbox of counter measures todiscourage the transactions with entities located innon-cooperative jurisdiction.

Action completed

Pursuant to Notification dated March 1, 2011 issued byDepartment of Revenue, the operational guidelines havebeen notified by Ministry of Culture on October 25, 2011.

Action completed

The following steps have been taken as a part of the FinanceAct, 2011 and also through issue of Notifications in theOfficial Gazette:

Two new taxable services viz. restaurant services and shortterm accommodation service have been included in thetax-net w.e.f. May 1, 2011.

The scope of the existing service categories has beenexpanded/rationalized in the Finance Act, 2011.

Notification has been issued on March 1, 2011 to carry outthe necessary changes in the import of services.

30




• Modifying provisions of the Cenvat Creditscheme to achieve a more realistic balancebetween input credits and output tax andharmonising the provisions of the schemeacross goods and services;

• Rationalizing penal provisions to reinforcethe message that honest taxpayers wouldbe facilitated and deviants would be dealtwith severely; and

• Adoption of Point of Taxation rules forservices which would shift the basis for taxcollection from “cash” towards “accrual”basis as with Central Excise duty.


106. 194 Many experts have argued that it will bedesirable to tax services based on a smallnegative list, so that many untapped sectorsare brought into the tax net. Such an approachwill be very conducive for a nationwide GST. Ipropose to initiate an informed public debateon the subject to help us finalise the approachto GST.


Notification has also been issued on March 1, 2011 to carryout the necessary changes in the Cenvat Credit scheme.

Section 89 has been inserted in the Finance Act, 1994 tousher in stringent penal provision for the tax evaders.

Notification has been issued on March 1, 2011 to introducePoint of Taxation Rules, 2011. Besides, notification has alsobeen issued on March 31, 2011 to make necessaryamendments to the Rules.

Action completed

Public debate has been initiated on the composition of‘negative list’ for service tax, as an approach to Goods andService Tax (GST). Besides, concept paper on negativelist approach to taxation of services has been placed in thepublic domain for debate.

Action completed

Documents

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