New Delhi, Dec 7: Indian government on Sunday, Dec 7 announced an Rs 20,000 cr stimulus package for economy which is hit by the global economic recession. Total expenditure is expected to go beyond Rs 300,000 crore Government announced a 4 pc cut in ad Valorem Cenvat rate to boost additional spending. The package came a day after RBI announced fresh monetary measures. India's Planning Commission Chief Montek Singh Alhuwalia said that the measure is announced to boost the economy.
Reports say that the FY09 fiscal will be beyond target. Govt asked Banks to increase lending. In addition, PSU banks will announce new package for home loans. The other major initiatives include:
- Extra Rs 14 lakh for Textile upgradation
- Export duty cut on Iron ore
- 4 pc cut on all products other than petroleum
- 2 pc grant on export credit
- Import duty on naphtha eliminated
- IIFCL to use bonds to refinance infra projects
- IIFCL to raise Rs10,000 crore tax-free bonds by March
- PSU to grant home loans in two categories ie up to Rs, 500,000 and up to Rs.2 million—will get special incentives
- Maruthi to cut price by 4 pc starting midnight. Maruti to pass 4 pc in Cenvat rate to consumers.