Zeenews Bureau

New Delhi, July 06: There was a mix response to the Budget 2009-10 presented by the Union Finance Minister Pranab Mukherjee in the Parliament on Monday. India Inc on Monday welcomed the focus on reviving economic growth to nine percent as also the indications for bold tax reforms, but expressed regret that the Minimum Alternate Tax was raised and Security Transaction Tax was let to continue.

Following are some of the excerpts of the industry leaders:

OP Bhatt, Chairman, State Bank of India

"It is an excellent Budget, we have to take a balanced view as things cannot change overnight. Every time it is not possible to please everybody."

Bank of Maharashtra, Chairman & MD, Allen CA Periera

"The government has done a balancing act.”

Suresh Senpathy, Wipro CFO

“The extension of STPI scheme is a welcome step. FBT had administrative overhead and its abolition is appreciative.”

Manoj Choraria, stock broker

"Hike in Minimum Alternate Tax (MAT) to 15 percent and no change in STT fell short of investors expectations. We were also expecting withdrawal of surcharge on corporate tax."

V Vaidyanathan, MD& CEO, ICICI Prudential

“This budget is of huge significance for the future because it signals growth as a priority over other conflicting priorities. The budget is kind of understated on issues like divestment and FDI, but if you read between the lines, the overall picture looks at high growth rates is a lot comforting.”

“The removal of surcharge on personal IT and increase of exemption leaves more money in the hands of the consumer. That is good for insurance too.”

Deepak Parekh

"I think I am overall very happy with the Budget. You must understand that he mentioned the role of the private sector and private finance ... Disinvestment will happen. The government needs more money ... I don`t see any reason for (being) negative at all.”

K V Kamath

"The important part (in the Budget) is holding tax ... (This would be) pushing money into (people`s) hands and it is certainly good for the economy."

Chanda Kochhar

"Finance Minister Pranab Mukherjee`s efforts to revive the economy back to nine per cent (growth) is in the right direction. Securities Transaction Tax too should have caught the government`s attention."

Rahul Bajaj

"I am happy on behalf of the whole industry that Fringe Benefit Tax has been abolished, but I am a little bit unhappy about MAT,"

Shivinder Mohan Singh, Fortis

"Health care sector has been ignored. We had been expecting a boost for the health care infrastructure, but nothing has been said. Budget was mute. We are disappointed."

PMS Prasad, president RIL

"This was always there. It is not a new benefit. We are very happy about the clarification as it ends the ambiguity." Budget disappointing: Hyundai Motor

“There was no support announced for auto export in the budget. No change in excise duty is welcome for domestic demand", HMIL Senior Vice-President (Sales & Marketing) Arvind Saxena.

Microsoft India spokesperson

"A welcome step announced is the proposal to set a cell within the Income Tax Department for facilitating the resolution of tax disputes within a reasonable time frame."

Sujit Sircar, iGate CFO

“The extension of utilisation of MAT credit from 7-10 years, will however, put a significant strain on the cash flow for IT companies.”

Budget on expected lines: PHD Chamber

“Budget was on expected lines reflecting the Government’s commitment of satisfying the aspirations of the aam aadmi even while striving to revive growth in the economy and address the problem of fiscal deficit,” said Satish Bagrodia, president, PHD Chamber,

“On the positive side, the Budget has provided a bold agriculture and rural thrust. There is a jump in expenditure in agriculture which is critical for improving farm productivity and rev up purchasing power of the rural populace. Similarly, a step up in investment in both physical and social infrastructure would go a long way to stimulate demand in the economy.”

“A fillip to Bharat Nirman would address the problem of rural infrastructure. We welcome the announcement of full interest subsidy against loans of higher education and over Rs. 2000 crore for IIT and NIT.”

Budget provison to help IT/ITES industry: NASSCOM

“The Finance Minister’s decision to extend fiscal benefits available to the industry under Section 10A/10B for one year will help the industry mitigate the impact of the current economic environment and help India retain its competitiveness,” Som Mittal, President, NASSCOM.

FICCI

"The Finance Minister has done a tight rope walking over a huge distance in a difficult situation - of a large fiscal deficit and a steep fall in growth rate and he has done a good walk. It is a daring Budget and a job well done in the most trying circumstances," FICCI Harsh Pati Singhania.

CII President Venu Srinivasan

"He (Pranab) has pretty much kept our expectations. It is fairly wise and measured Budget, given that international markets have still not recovered from the meltdown," he said.

KPMG

"The budget is a big disappointment. No fundamental or structural issues related with the sector, including FDI and industry status for retail, or reduction in service taxes have been addressed," KPMG Partner and Industry Leader (Retail and Consumer Product Practice) Pinaki Ranjan Mishra said.

Cement Industry

Sumit Banerjee, MD, ACC LTD

"We are disappointed with that cement fails to get any respite from the high rate of taxes and duties."

KC Birla, Ultratech Cement`s president & CFO



"The Budget is reflective of the Government`s inclusive growth agenda. The increased allocation on the infrastructure scetor would augur well since it will push up demand for cement.”

Adani Group Chairman Gautam Adani

"The gradual ramp up of investment in infrastructure to nine per cent of GDP by 2014 indicates clear focus on infrastructure and increased expenditure on NHAI are welcome steps."

Reliance Infrastructure CEO (Road Business) Sudhir Hoshing

"The excise duty waiver for pre-cast structures at construction site is a welcome step."

Vinod Juneja, MD, Binani Cement

“The Budget will help increase the consumption of cement and investment on the sector in India as the Government plans to spend more infrastructure, Commonwealth games and housing sectors. This is a good Budget for the 100 crore people of India, but not the manufacturing sector."

Hospitality Sector

MP Purushothaman, Federation of Hotel and Restaurant Association of India

"The Budget did not give the hospitality and tourism industry the importance that it deserves, specially when the country expects our industry to generate more and more jobs."

Jyotsna Suri, Chairperson & MD, Bharat Hotels

"The overall budget is extremely balanced but as an industry it is disappointing for us. We had expected incentives in the form of tax benefits... we had demanded that service tax be completely abolished. That has not happened. It is a disappointment, but the Finance Minister`s announcement to allocate more on infrastructural development will benefit us indirectly."

TAAI President Rajji Rai

"Not a single item regarding the sector has been addressed. There is no mention of export industry status for hospitality and tourism, no tax holiday as demanded, no rationalisation of Section 80 HHD of the Income Tax Act under which travel operators could invest their savings in the industry."