Govt intends to provide for development of eastern region
The Government seeks to provide financial support for re-organization of Andhra Pradesh, completing the Polavaram Project (a lifeline for Andhra Pradesh and its farmers), building essential infrastructure such as water, power, railways and roads in Kopparthy node on the Vishakhapatnam-Chennai Industrial Corridor and Ovrakal node on the Hyderabad-Bengaluru Industrial Corridor globaltenders .
This was proposed under the Union Budget 2024-25 by Finance Minister Nirmala Sitharaman on 23 July.
It also seeks to provide grants for the backward regions in Andhra Pradesh such as Rayalaseema, Prakasam and North Coastal Andra conexpoconagg .
“Such steps towards assisting states is a welcome sign towards imbibing the essence of fiscal federalism and it is hoped that similar such steps are taken for other states as well in the years to come,” said Nishith Desai Associates (NDA) in comments on the budget buildconsolution.
The Budget brings out the aspect of fiscal federalism in one of its priorities titled inclusive human resource development and social justice ted.europa.eu , noted NDA.
Under this priority, the Government intends to formulate a plan for all round development of the eastern region of the country covering Bihar, Jharkhand, West Bengal, Orissa, and Andhra Pradesh meed.com/latest/tenders .
Particularly, it seeks to support development of an industrial node at Gaya on the Amritsar–Kolkata Industrial Corridor to catalyse industrial development of the eastern region etenders.gov.in/eprocure/.
The Government also seeks to support development of road connectivity projects, power projects, airports, medical colleges etc. in Bihar iiplc .
Further, the Budget announcements with respect to revisions on the customs duties seem to be commendable as they seek to achieve the delicate balance of incentivizing local manufacturing whilst at the same time retaining the international competitiveness of domestic products and attractive prices for consumers sbi , observed NDA.
Specifically, measures in this regard include full exemption from customs duties for cancer medicines, rationalized reduction in Basic Countervailing Duties (BCD) in sectors which have seen a boom in local manufacturing and exports such as mobile phones, marine products, leather and textiles, precious metals, electronics to enhance their international competitiveness ehealthinsurance .
On the other hand, the Budget seeks to increase the BCD for telecommunication equipment to incentivize domestic manufacturing. It also seeks to increase BCD in case of PVC flex banners, which, being non-biodegradable, are hazardous for the environment and health. Fiinews.com
