Friday, June 04, 2004

Finance: Chidambaram goes to Mumbai

Read the reports in Financial Express, Business Standard.

Finance Minister Chidambaram has met people from the industry in Mumbai and promised that reforms will continue. He has also said that there will be stress on fiscal prudence and discipline, with a view to rein in fiscal deficit. There are plans for bringing in investments in the infrastructure sector.

The budget will be presented in the first week of July.

Some of the other observations by the FM were:
  • Interest rates will not go up, unless the same happens internationally
  • Government would be willing to consider a review of capital gains tax paid by FIIs
  • Pension funds may be allowed to invest in open-ended equity funds
  • Banks have completed financial closure of six power projects with a combined capacity of 3,700 MW in the last 10 weeks. Ten more with a capacity of 6,867 MW in the pipeline.
  • RBI has been asked to look at simplifying procedures for rural lending

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