Budget 2016 metal industry ppt

1. Budget 2016
• Infrastructure
• Metal
• Aviation

2. Infrastructure Sector

3. Major players in Infrastructure sector
in India
• Larsen & Toubro
• GMR Infra
• Jaypee Group
• Reliance Infrastructure
• Lanco Infratech
• Punj Lloyd

4. The Budget
• Total outlay for infrastructure - `2,21,246 crore.
• Out of which 97000 cr. is for Road Development and 2.21 lakh cr
spent on Railways
• Major changes under Railway budget 2016
• North-East India, especially Mizoram and Manipur, to be connected
through broad gauge soon.
Impact – Development in Accessibility to N-E Region.
• No hikes in Passenger Fares

5. Road Development
• Total investment in the road sector, including PMGSY allocation,
would be 97,000 crore during 2016-17.
• To approve nearly 10,000 kms of National Highways in 2016-17.
• Allocation of ` 55,000 crore in the Budget for Roads.
• Additional 15,000 crore to be raised by NHAI through bonds.
Impact – Greater accessibility for Transportation.Boost for
Manufacturing and other industries

6. Power
• To provide calibrated marketing freedom in order to incentivise gas
production from deep-water, ultra deep-water and high pressure-high
temperature areas.
• Impact-Future imports will get reduced. But also, with big rewards,
big risks are involved.
• Comprehensive plan, spanning next 15 to 20 years, to augment the
investment around 3000Cr.pa in nuclear power generation to be
drawn up.
• Impact- This step Will help to soon Light up every home in India.

7. Other measures
• New credit rating system for infrastructure projects to be Introduced.
• Impact – Useful for analysis for infrastructure projects
• A new policy for management of Government investment in Public
Sector Enterprises, including disinvestment and strategic sale, approved.
• Impact – Effective decisions related to investments and disinvestments
by government and effective use of public funds.
• Public Utility (Resolution of Disputes) Bill will be introduced during 2016-
17
• Guidelines for renegotiation of PPP Concession Agreements will be
issued
• Impact:-Arrangement for resolution of disputes related to PPP

8. PROMOTING AFFORDABLE HOUSING
• 100% deduction for profits to an undertaking in housing project for
flats upto 30 sq. metres in four metro cities and 60 sq. metres in
other cities, approved during June 2016 to March 2019 and
completed in three years. MAT to apply.
• Impact- Tax Deductions thus leads to Savings

9. Budget 2016 Metal Industry

10. Indian Metal Industry Overview
• India is worlds 3rd largest steel Producer
• The production of metal in 2014-15 was 91.46MTPA
• It employed over 600000 people in India
• Total domestic demand for steel is estimated at 113.3 MTPA by 2016-17
• Total finished steel production in the country increased at a CAGR of 7.45 per cent
over FY011–15.
• The Government of India has allowed 100 per cent foreign direct investment (FDI)
in the steel sector
• The steel sector in India contributes nearly two per cent of the country’s gross
domestic product
• India’s crude steel capacity reached 109.85 Million Tonnes (MT) in 2014-15, a
growth of 7.4 per cent.
• India has the fifth-largest coal reserves in the world at 301.6 billion tonnes (BT)

11. Major Players
• Tata Steel (ranked 11th in the world in terms of production of steel)
• Steel Authority of India (SAIL) – ranked 29th in the world.
• JSW Steel Limited – ranked 31 in the world.
• Essar Steel
• Jindal Steel and Power

12. The Budget
• Import duty up on Aluminium
• Custom duty on primary aluminium increased from 5% to 7.5%.
• Basic Customs Duty on Other aluminium products increased from
7.5% to 10%.
Impacts-
Increase in custom duty of aluminium would help to check rising
import and encourage domestic industry to grow.

13. The Budget
• Basic Customs Duty on Zinc alloys increased from 5% to 7.5%
Impact: Increase in custom duty of zinc alloys would help to check rising import
dumping and encourage domestic industry.
• Export duty on Bauxite decreased from 20% to 15%
Impact : It is negative for aluminium industry as decrease in export duty on bauxite
would decrease domestic ore availability , but it will help Bauxite manufacturer while
exporting.
• Export duty on Bauxite decreased from 20% to 15%
Impact :It is negative for aluminium industry as decrease in export duty on bauxite
would decrease domestic ore availability , but it will help Bauxite manufacturer while
exporting.

14. The Budget
• Basic Customs Duty on Brass scrap decreased from 5% to 2.5%.
• Excise duty structure on disposable containers made of aluminium
foils being changed from 2% (without CENVAT credit) or 6% (with
CENVAT credit) to 2% (without CENVAT credit) or 12.5% (with CENVAT
credit)
• Clean Environment Cess' to impact input costs :
The doubling of Clean Energy Cess from Rs 200 to 400 per tonne would
further increase the input cost for domestic producers.

15. Aviation Sector

16. Aviation Sector in India
• It can broadly be divided into military and civil aviation
• Ministry of Civil Aviation is responsible for civilian aviation and Ministry of
Defence is responsible for the Indian Air Force.

17. Introduction
• India aims to become the third-largest aviation market by 2020 and the largest by
2030.
• The Civil Aviation industry has ushered in a new era of expansion.
• International and domestic passenger traffic grew 6.6 per cent and 15.5 per cent,
respectively, in September 2015.
• The airlines operating in India are projected to record a collective operating profit
of Rs 8,100 crore (US$ 1.29 billion) in fiscal year 2016, according to Crisil Ltd.

18. Major Players in Aviation Industry
• Indigo
IndiGo plans to file documents for an initial public offering within the next two months to raise
US$ 400 million by selling 10 per cent stake.
• Spicejet
SpiceJet plans to enter a deal with Boeing Co. and Airbus Group SE to buy 80-120 jet airplanes
which would help to expand their fleet and rebuild its business
• Go Air
• Jet Airways
• Tata Sons' joint ventures with Malaysia's AirAsia and Singapore
Airlines.

19. Union Budget – Aviation Sector
• Mixed bag for aviation as tax sops offset by ATF duty hike
• In civil aviation, 160 non-functional airports to be revived at a cost of
Rs 50-100 crore each and 10 of 25 defunct airstrips.