Thursday, December 4, 2008

Infra Sops Likely For Realty Auto 15K Crore - Dec 04, 2008

The government on December 07 is expected to reveal a motivation package for housing, auto and export sectors and announce Rs 15,000 crore as budgetary support for infrastructure sector. The package may include a Rs 2,000 crore package for exporters, cut in excise duty on commercial vehicles and line of credit for housing and auto.Along with this, reduction in short-term rates by the RBI is expected that could in turn ease interest rates for home, personal and other loans.

The fine print of the stimulus package was finalized at a meeting chaired by Cabinet Secretary K M Chandrasekhar, a day after the decision on the package was taken by the apex committee chaired by Prime Minister Manmohan Singh. According to a highly placed source, norms for raising funds from the overseas market may also me relaxed further due to the tight liquidity position of the Indian industry. In view of the severe impact of the recession in the US and some European economies on exporters, the target of 200 billion dollar has been reduced to 175 billion dollar for the current fiscal.

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