Steel prices to come down by Rs 500-700 per tonne
Hindustan Times

With the finance ministry's proposal to reduce excise duty from 16 per cent to 14 per cent, domestic steel prices will come down by Rs 500-700 per tonne with immediate effect. All major steel firms including Tata Steel, JSW Steel, SAIL, Essar Steel and Ispat are planning to pass the reduction in duty to the consumers. As a result, prices will come down, but the margins of the companies would not be hurt, said industry experts.

Reduction in excise duty was a long pending demand. We are passing the reduction in duty to the consumers. Prices will come down, but there would not be an impact on margins,? said Sheshagiri Rao, CFO, JSW Steel.
The move is expected to increase the steel consumption in the country. Currently, Steel consumption is growing at the rate of 12.6 per cent, which is almost double to the 6.6 per cent growth in supply. The government has also removed 5 per cent import duty on steel metal scrap.
?Reduction in the excise duty and a percentage cut in CST are small but a decisive step towards a rational tax regime,? said J Mehra, CEO, Essar Steel.

Now, funds for urban renewal mission
Times of India

For Delhi that’s witnessing hectic activity in creating urban infrastructure, riding piggyback on Commonwealth Games, a more than 25 per cent hike has been made in the budgetary allocation for the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

From Rs 5,482 crore in 2007-08, the amount has been increased to Rs 6,866 crore, raising hopes of getting many more projects sanctioned under the scheme. Though allocations under the scheme are based on approval for individual projects, according to government sources, the "rough" allocations for the city are as follows — Rs 375 crore for urban infrastructure and governance and Rs 200 crore for low-cost housing for urban poor.

The total Central assistance that Delhi has got in this budget is about Rs 1,300 crore. The state missed out on last year’s pie of Rs 298 crore after it failed to fulfil the mandatory reforms prescribed in JNNURM. It has, since the signing of the memorandum of agreement between the state government, the Union government and local bodies for transfer of power to the latter, got sanction for Rs 180 crore under JNNURM, of which Rs 67 crore has already reached the relevant departments/agencies. Funds have been sanctioned for construction of 43,804 flats in areas like Bawana, Narela, Bhorgarh, Pooth Khurd, Kanjhawala, Baprola, Ghagla etc, most of which is being done by the Delhi State Industrial Development Corporation (DSIDC). Speaking to TOI, state urban development and PWD minister Rajkumar Chauhan welcomed the increased allocation under JNNURM. "The progress on the five projects which have been sanctioned so far is really good with land having been acquired for all of them. It is great that the JNNURM funds have now been increased because infrastructure, as the chief minister keeps saying, is a very vital component of urban development."

The state had, on its wishlist submitted to the Union government ahead of the budget, asked for an allocation of Rs 700 crore under JNNURM. The actual allocation, admittedly is much less but given the city’s track record — last year it not only missed out on the JNNURM funds but also got only Rs 150 crore for Commonwealth Games though it had asked for double that amount — that’s something nobody is talking about. Said a senior official of the UD department, "We have got sanctions for five projects and are awaiting approval for seven more. Now that the overall budgetary outlay has been increased, we will submit many more projects to get as much advantage as possible from the scheme."