More economics than politics, defines the bold budgetpresented by Mr Yashwant Sinha. I am extremely delighted by all aspects ofBudget 2001-from Government downsizing to bringing down custom duties toallowing reverse fungibility. For the first time, you don't see shades of politics and populism in thebudget. It is based on sound economic principles.
Giving tax holidays to new telecom units set up before March 2003 will beextremely beneficial to the industry since this is the time when lots of newprojects are being set up.
Enabling reverse fungibility and encouraging primary market, by making longterm capital gains exempt from taxation for it, has made things veryexciting for the stock market and for the telecom industry. This willencourage us to go to the market sooner than we had earlier planned.
Also, now we can take our shares directly to ADR and GDR. This is very boldstep since earlier only the reverse was true. We will now see technologycompanies listing in Indian markets.
Because now, whenever required they can list their shares in the form ofADRs and GDRs. This allows them a lot more flexibility.
One important things was the announcement to disinvest in VSNL this yearitself. I hope the government follows this up with a speedy disinvestment inMTNL as well.
(Sunil B Mittal is CMD, Bharti Enterprises)
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
