Fiscal Package Part - II - Key Factors

1. IIFCL allowed to raise Rs 30,000 crores via tax free bonds.

It was one month before that the government approved that IIFCL can borrow up to 10000 Crore in Tax free bonds which will be lend to infrastructure projects that are public and private partnership , As these projects are having high time getting long term loan from banks , Because Banks are also in need of money IIFCL might recapitalise banks through this .So they did not even fully get the 10000 Crore now Indian Government has approved for the second stimulus package that India Infrastructure Finance Company Ltd (IIFCL) to raise Rs 30,000 Crore for refinancing projects mainly in the highway and port sectors.

This will really help in financing big projects in turn will help the industry grow and also bring very good number of Job openings.

2. Govt eases ceiling on ECB borrowings as part of the second stimulus package.

3. Recapitalize PSU banks by Rs 20,000 cr in two years.

4. Custom exemption on zinc and ferro alloys has been withdrawn

5. NBFCs in infrastructure sector can access ECBs.

6. FII investment limit in corporate bonds raised from 6 billion to 15 billion dollars.

7. Govt extends tax incentive scheme for exporters up to Dec 31.

8. State governmnet allowed to market borrowing of 0.5 per cent of GDP.