Union Budget 2013-14: Allocation of Funds to Industrial Sector

In the Union Budget 2013-14, the Union Finance Minister, P. Chidambaram announced plans and proposals for the industrial sector.

Created On: Mar 2, 2013 09:08 ISTModified On: Mar 2, 2013 09:09 IST

In the Union Budget 2013-14, the Union Finance minister P. Chidambaram assigned new proposals and plans. The plans and proposals as announced by the Finance Minister are as follows:

Plans for seven new cities

Plans for seven new cities were finalized for industrial corridors and work on two new smart industrial cities at Dholera (Gujarat) and Shendra Bidkin (Maharashtra) will begin during 2013-14 financial year. Also, an all-inclusive plan was under preparation for Chennai Bengaluru industrial corridor. Preparatory work for next corridor - Bengaluru Mumbai industrial corridor was started.

Two new ports to be established in West Bengal and Andhra Pradesh

The plan for establishing two new ports in Sagar (West Bengal) and in Andhra Pradesh was under way. Apart from this, a new outer harbour will be developed in the VOC port at Thoothukkudi (Tamil Nadu) through PPP at an estimated cost of 7500 crore Rupees.

Power transmission system

A power transmission system was also planned to be constructed from Srinagar to Leh. An amount of 226 crore Rupees was provided in 2013-14 financial year for this.

The oil and gas exploration policy

It was decided in the Union Budget 2013-14 that the oil and gas exploration policy shall be reviewed to move from profit sharing to revenue sharing contracts. The Finance Minister announced that the policy for encouraging the exploration as well as production of shale gas will be announced. The natural gas pricing policy will be reviewed and uncertainties regarding pricing will be removed.

Support to Micro, Small and Medium Enterprises (MSMEs)

In order to facilitate assistance to the Micro, Small and Medium Enterprises (MSMEs), the refinancing capability of SIDBI was proposed to be enhanced from 5000 crore Rupees to 10000 crore Rupees. Additionally, it was proposed that SIDBI would be provided an amount of 500 crore Rupees for setting up the Credit Guarantee Fund for factoring.

Apparel Parks to be set up

It was also proposed that apparel parks shall be set up within the Integrated Textile Parks. These apparel parks will house the apparel manufacturing units. A scheme called Integrated Processing Developing Scheme was initiated to address to environmental concerns of the textile industry. Term loans as well as the working capital to handloom sector will be made available at the concessional interest of 6 percent. This in turn will forward the benefit to 1.5 lakh weavers as well as 1800 primary co-operative societies.

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