GAAR amendments finalised: Chidambaram

Nov 19 2012, 01:43 IST
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SummaryAmendments to GAAR, the controversial law against tax avoidance through foreign investments, have been finalised, finance minister P Chidambaram disclosed on Sunday.

Prime Minister to clear large projects. However, environment minister Jayanthi Natarajan had raised objections to the NIB proposal.

When asked about the environment ministry views,Chidambaram said, "They have some reservation which I think the officers have explained at a meeting...with the PMO."

He said that "please remember NIB, or whatever name you call it", is intended to address only the projects where the investment is over R1,000 crore and all other projects are not being brought under its purview.”

‘Reserve Bank, govt not antagonistic to each other' Chidambaram rejected the perception that his ministry and RBI were at loggerheads over interest rates and other issues, and said that they were not "antagonistic" to each other.

"The equation between the government and the central bank in India is the same as the equation between the government and the central bank of any country. It is always arguing for growth on the part of government and arguing for stability and taming inflation on the part of the central bank," he told PTI in an interview.

Even as the government makes out a case for the central bank to support growth, it doesn't mean “they (the finance ministry and the RBI) are antagonistic to each other", he said. "What we are trying to do is to argue our case, argue the case for growth, argue the case for taming inflation and then of course whatever the judgement is arrived at...," the minister added.

Invest or lose surplus cash, PSUs told

Chidambaram said the central PSUs have been put on notice to either invest their surplus cash or lose it. “We have already put (PSUs) on notice, no one will be allowed to fall short of (the) announced intention to invest... If they have not invested and they still have surplus cash, they have been told to invest...the principle is use it or lose it," he said.

At the beginning of the financial year, each central PSUs had committed to invest certain amount.

Chidambaram said the performance of CMDs will be measured, among other things, on how much their company has invested in terms of the declared intention.

Chidambaram said the performance of PSUs on investment front will be reviewed in January. Stressing that investment is key to growth, he said thereis reluctance among industry to invest because they perceive a number of hurdles to investment and also do not see the economic situation very "propitious or conducive".

Govt may be open to

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