Need for capital for tech up-gradation for the forging industry could be raised by way of introducing a technology up-gradation scheme. A pro investment atmosphere will enable forging units to avail of bank loans at about 5 pct lower than market rate towards acquiring modern technology to make Indian companies more competitive in the international market.
Substantial reduction in Minimum Alternate Tax (MAT) rates with basic rate fixed at 5 pct would attract more industrial and infrastructure investments. He also suggests companies be allowed to set-off entire past book losses, including unabsorbed depreciation, before subjected to MAT.
He advocates for provisions for owners to surrender their vehicles to manufacturing companies after 15 years of use, and be eligible to purchase a new vehicle with zero excise duty. If not, concession should be at 50 pct of prevailing excise duty. This will enhance overall automotive industry growth, and boost national economy.
Excise duty on all vehicles, more particularly transport vehicles (both passenger and goods), should be reduced by a flat 5 pct. This could boost demand
for vehicles, and kick into action higher economic growth. Keeping in mind critical power situation in India, reforms must encourage projects seeking to produce renewable energy. Solar energy systems need to be upgraded. Making them economical and encouraging use of energy efficient products alongwith support for manufacturers who do so by way of concessions is required.