Mixed reactions for Budget '07 from industry captains

Pune, Feb 28 (UNI) The budget has not addressed the pressing problems of inflation and infrastructure but has managed to maintain a staus quo, opined captains of industry in the city here today.

CII President and Chairman and MD Praj Industries, Pramod Chaudhri said the budget has ''not hurt but not given any prescription''. He voiced concern over the neglect of the agriculture sector. He said the subsidies mentioned to small farmers have been announced earlier as well but that has not accerlerated growth, in fact, quite the opposite as the setor is faring badly even as 70 per cent population is dependent on agriculture.

''Something is missing and the growth imbalances will be glaring,'' he observed.

DaimlerChrysler Director, Corporate Affairs, Suhas M Kadlaskar said there has been no reduction of excise on cars and no reduction on surcharge, in fact, the auto sector has not been touched'', he said.

K N D Namburipad from the Auto Components sector said no special benefits have been given to the auto component sector and industry while the divident distribution tax will eat away into the savings.

Former Chairman of CII, Pradeep Bhargava said the Finance Minister's presentation of the budget was more a statement of accounts. The budget focussed on 'Allocation and not on Deliverance'. Plan for infrastructure is dismal as addition to grid only 23,000 MW as against 33,000 MW while the need is for 40,000 MW.

This is only a lip service to infrastructure, he said. The budget is the outcome of pressure from inflation and inclusiveness.

The industry over the years is becoming 'indifferent to periodic changes including budget, it takes things in its stride'', he said.

Director, Forbes Marshall and Past Chairman CII Maharashtra, Naushad Forbes said the budget is ''a whole lot of tinkering and a slew of schemes, but what does it really add up to. No reform was expected, and none was provided.'' DSK Kulkarni from the builders' lobby was disappointed with the additional tax on cement. ''We were expecting something for the real estate sector but nothing was mentioned , ''he said.

CII members felt that there has been no major step to control inflation and government expenditure. Generally a budget that has maintained a status-quo with no real boost to industry and there has been no specific boost to the high economic growth. Members felt that the budget was good and the plus points were more allocation to education, health and infrastructure but more measures were required to check inflation and growth in the power sector. The IT exemption limit should have been further raised while the dividend distribution tax would affect savings members felt.

UNI