Budget gives 'project import status' for big-city Monorails

The government on Friday proposed to grant 'project import status' to Monorails in big cities, thereby allowing shipping in of equipment and parts for them at a much lower customs duty than the prevailing rates.

The concessional basic duty at five per cent has been granted to Monorail projects in order to reduce dependence on fossil fuels like petrol and diesel.

"I propose to grant project import status to 'Monorail projects for urban transport' at a concessional basic duty of five per cent," Finance Minister Pranab Mukherjee said, while presenting the Budget for 2010-2011.

He also proposed to allow resale of machinery for road construction with full import duty exemption on its payment at depreciated value.

The importer is free to relocate such machinery to other eligible road construction projects, he added.

To encourage manufacture of cellphone accessories like battery chargers and hands-free headphones in the country, Mukherjee also proposed to exempt such items from levy of basic, counter vailing and special additional duties.

Such exemption is already available to certain cell phone parts and accessories. He also proposed to extend exclusion from special additional duty till March 31, 2001.