Industry starts pre-Budget talks with FinMin

Industry lobbies have begun pre-budget consultations with the Union finance ministry for 2010-11. Representatives of the Confederation of Indian Industry (CII) and the Federation of Indian Chambers of Commerce and Industry (Ficci) met revenue secretary P V Bhide to discuss the coming budget.

The CII delegation comprised Arun Bharat Ram, managing director of SRF Limited; Sunil K Munjal, chairman of Hero Corporate Services Ltd; S Sandilya, Chairman, Eicher Group, and Suneet Maheswari, Chief Executive, L&T Infrastructure Finance Company Ltd, among others.

Ficci asked for more fiscal props to help the process of economic recovery, still nascent. It wanted caution on the rolling back of stimulus packages and to sustain liquidity in the system.

Both chambers expressed concern over the fiscal deficit and the necessity of reining in the deficit to the legal (FRBM) targets, so that it does not crowd out private investments.

Ficci reiterated the need to re-introduce investment allowance or the restoration of depreciation tax to the earlier 25 per cent. For housing, it said there is a need for strengthening financial incentives for investment in one residential house property, by allowing more reduction for interest on loans taken for acquiring house property and a deduction under section 80-C on repayment of housing loan.