Thursday, 28 February 2013

Current Affairs-Indian Government's Union Budget 2013-14: Government to Introduce Investment Allowance of 15 per cent


Government to Introduce Investment Allowance of 15 per cent for High Value Investments Incentives for Semiconductor Wafer Fab Manufacturing

The Finance Minister, Shri P Chidambaram in his Budget speech in Lok Sabha today said that to attract new investment and to quicken the implementation of projects, I propose to introduce an investment allowance for new high value investments A company investing Rs. 100 crore or more in plant and machinery during the period 1.4.2013 to 31.3.2015 will be entitled to deduct an investment allowance of 15 percent of the investment. This will be in addition to the current rates of depreciation. There will be enormous spill-over benefits to small and medium enterprise. 

Shri Chidambaram added that the National Electronics Policy 2012 is intended to promote manufacture of electronic good in India. We recognize the pivotal role of semiconductor wafer fabs in the eco-system of manufacture of electronics. I propose to provide appropriate incentives to semiconductor wafer fab manufacturing facilities, including zero customs duty for plant and machinery.   

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