FinMin to expand list of infra sector industries in a month

The finance ministry will expand the list of industries that qualify for infrastructure status within a months time.

We are close to identifying sectors which are to be brought under infrastructure. We are close to getting that cleared…may be with in a months time, said R Gopalan,secretary department of economic affairs during an industry interaction organised by CII on Saturday.

Currently,power,road,ports and industrial parks are among some of the segments that have been included in the infrastructure sector. Finance minister Pranab Mukherjee in Budget 2011-12 has also proposed to include cold chains,post- harvest storage and capital investment in fertiliser production as infrastructure sub-sectors.

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Many sectors like real estate,health and retail are keen to get infrastructure status as they would qualify for several benefits and exemptions for development activities.

Besides income tax exemptions,an industry counted in the infrastructure sector is allowed to borrow funds from overseas and are also provided easy credit in the domestic banks.

The countrys poor infrastructure,which is seen a major bottleneck for economic growth,requires an investment of a whopping $ 1 trillion in the 12th Plan,beginning year 2012 -17.

In his Budget speech,Mukherjee termed infrastructure as critical for Indias development,and proposed initiatives like creation of an infrastructure debt fund and raising the limit of foreign institutional investors (FII) in corporate bonds.