BUDGET FY17 - GAINERS AND LOSERS

AGRICULTURE

ADVANTAGE

·         Rs.35,984 crore allocated for agriculture

·         To move from food security to doubling farmers income in the next 5 years

·         To bring 28.5 lakh hectares under irrigation; AIBP allocation at Rs.17,000 crore

·         89 irrigation projects to be fast tracked

·         Rs.15,000 crore for interest subvention on farm loans

·         5 lakh acres of land to be brought under organic farming in three years under KrishiVikasYojana

·         Irrigation fund worth Rs.20,000 crore to be set up under NABARD

·         Rs. 850 crore spend over the next couple of years on animal husbandry, cattle and livestock breeding

·         Rs.412 allocated for organic farming

·         228% jump in allocation to gram panchayats.

·         Rs.38,500 crore, highest ever allocation under MNREGA

Finolex, United Phosphorus, KSB Pumps, Advanta India, Monsanto, Bayer Crop, Rallis India, Jain Irrigation, Shakti Pumps, DhanukaAgritech

REALTY

ADVANTAGE

·         Propose 100% deduction to undertakings for construction of affordable housing

·         Deduction for additional interest of Rs 50,000/yr for loans up to Rs 35 lakh sanctioned in 2016-17 for 1st time home buyers

·         Raise personal I-T house rent exemption to Rs 60,000 from Rs 24,000/year

DLF, Prestige Estate, Oberoi Realty, HCC, HDIL, Puravankara, Omaxe, Sobha Developers, Godrej Props, AshianaHsng, Peninsula Land

NBFCs

ADVANTAGE

·         NBFCs shall be eligible for deduction to extent of 5% of its income in respect of provision for bad debts

·         Amendments in SARFAESI Act 2002 to enable sponsor of an ARC to hold up to 100% stake in ARC.

·         Foreign investment in insurance, pension sectors up to 49% via automatic route

·         Increase in crop insurance

SKS Micro, Reliance Capital, Kotak, M&M Finance, IIFL Holdings, Baja Finserv, Bajaj Holdings, L&T Finance, Max Financial

INFRASTRUCTURE& ROAD PROJECTS

ADVANTAGE

·         Rs.55,000 crore for roads and highways

·         Rs.15,000 crore to be raised by NHAI via bonds in FY17

·         Total outlay at Rs.97,000 crore for roads and highways

·         68 airports to be developed

·         10 out of the 25 non functional airstrips to be developed

L&T, Lanco Infra, GVK Power, GMR Infra, IRB Infra, Marg Construction, IVRCL Infra, HCC, NHAI, C&C Constrcution, MBL, ARSS Infra, NCC, AshokaBuildcon

FOOD PROCESSING

ADVANTAGE

·         100% FDI to be allowed through FIPB route in marketing of food

Nestle, Glaxo, JHS Svendgaard, Godrej Inds, Dabur, Marico, Bajaj Corp

MISCELLANEOUS

 ADVANTAGE

·         Allocation of Rs 9000 crore towards Swachh Bharat Mission. 

AtoZ Maintenance, Nitco, Kajaria, HSIL, Somany Tiles

EDUCATION

ADVANTAGE

• 62 new NavodayaVidyalayas will be opened
• Higher Education Financing Agency to be set-up with initial capital base of Rs. 1000 crore.
• 10 public and 10 private educational institutions to be made world-class.
• Digital repository for all school leaving certificates and diplomas.

Educomp, Everonn, NIIT

POWER

ADVANTAGE

• Propose Rs 8,500 cr for rural electrification
• Committed to achieve 100% village electrification by May 1, 2018
• To up FY17 allocation for electrification by 50%
• Electrification of 2000 Km 

Tata Power, NTPC, Adani Power, JSW Energy, Alstom India, KEC International, Siemens, Kalpataru Power

PSUs

ADVANTAGE

•  Divestment target for FY17 at Rs.35,000 crore.Crude Cess reduced from Rs.4,500 PMT to 20% ad- voleram duty

ONGC, Oil India

CIGARETTE

DISADVANTAGE

• Hikes excise duty  on tobacco products except beedis by 10-15%

ITC, VST, Godfrey Phillips

TEXTILES

DISADVANTAGE

• Higher excise on readymade garments priced at Rs 1,000 or more

Arvind, Aditya Birla Fashion, Kitex Garments, Indo Count,, Nandan Denim

AVIATION

DISADVANTAGE

•  Excise duty on air turbine fuel has been hiked from 8% to 14%

Indigo, Spicejet, Jet Airways

ALUMINIUM

ADVANTAGE

• Import Duty hiked from 5% to 7.5% to save the industry from challenge of cheaper imports

Vedanta, Hindalco, Nalco

IT - TRAINING

ADVANTAGE

• Govt to focus on social sector especially health care, education & skill development
• to set up high education financing agency with Rs 1,000 cr capital
• Regulatory architecture to be provided to ten public and ten private companies

Aptech, Zee Learn, NIIT, MT Educare

MINING

ADVANTAGE

• Propose to scrap export duty on low grade iron ore
• Clean energy cess for coal and lignite Rs 400/tonne

Vedanta, Coal India, NMDC, Neyvelli Lignite

OIL & GAS

ADVANTAGE

•  Cess on crude reduced from Rs 4500/MT to 20% ad valorem
• To incentivise gas production from deep sea &ultra deep waters

GAIL, ONGC, Cairn India, RIL, Oil India, Petronet LNG, Deep Inds, Aban Offshore, HOEC, Jindal Drilling

GOLD & DIAMOND

DISADVANTAGE

·         Introduction of 1% excise duty on gold and diamond jewellery without input credit or 12.5% excise with input credit 

PC Jewellers, Thangamayil, TBZ, Titan

           AUTOMOBILE 

DISADVANTAGE

• Infrastructure cess on Petrol/LPG/CNG driven motor vehicles of length not exceeding 4m and engine capacity not exceeding 1200cc
• 2.5% cess on diesel driven motor vehicles of length not exceeding 4m and engine capacity not exceeding 1500cc
• 4% cess on other higher engine capacity motor vehicles and SUVs and bigger sedans

M&M, Tata Motors, Maruti, Ashok Leyland, Force Motors

TRACTOR/TWO-WHEELERS

ADVANTAGE

·         Rs.38,500 crore, highest ever allocation under MNREGA

·         Aim of the FM to double farmer income and other rural/agriculture push will push up demand for tractors and two wheelers

Eicher, Escorts, Punjab Tractors, M&M, TVS, Bajaj, Hero Moto.

PSU BANKS

DISADVANTAGE

·         Recapitalization of banks at Rs.25,000 cr much below what was expected

BoB, Bank of India, Bank of Maharashtra, PNB, Allahabad Bank, Oriental Bank, Canara Bank

EXCHANGE

ADVANTAGE

·         Foreign companies can increase stake in local stock exchanges to 15% from 5%. Introduction of new Option Contracts by SEBI.

MCX