Piramal Group compliments Finance Minister

Mumbai, Mar 1 (UNI) Nicholas Piramal India Limited Chairman Ajay Piramal and Director Dr Swati Piramal today complimented the Finance Minister and termed the Union Budget 2007-08 as 'novel' one.

''The most redeeming feature of this Budget is keeping the fiscal deficit of 2007-08 well below the FRBM target of 3.3 per cent. The proposal also contains some novel thinking such as Reverse Mortgage Scheme to be implemented by the National Housing Bank, companies allowed to issue exchangeable bonds for unlocking group company shares, etc,'' Mr Piramal said.

''The Finance Minister needs to be complimented for having reversed the sunset clause already built in the Statute in respect of Weighted deduction on R&D. Against all fears that the tax holiday benefits in respect of industrial units set up in backward regions may be withdrawn, it is heartening to note that such benefits in respect of J&K have been extended for 5 more years,'' he pointed out.

''The Budget will herald a good year for the pharma sector.

Weighted deduction under section 35 (2A, B) for 150 per cent is continued for next five years for approved in-house R&D facilities of industries in the Bio Pharma sector. This is a very positive development for increasing investment in India's knowledge economy.

Reducing service tax on clinical trials, clarification of FPT on free samples, encouragement of venture capital, funding in Bio-technology and NCE research are very positive steps,'' Dr Swati Piramal said.

UNI