Overall this is a neutral to slightly positive budget. It is yet another step, albeit, a small one, toward reforms.

I feel, on the whole, there are some positive elements in the budget. They are – further reforms in the farm and oil sector, reforms in the power transmission and distribution, dismantling of APM in petroleum goods, benefits to special economic zones, etc. Corporate debt restructuring which is essential for certain industries in India, is also a very positive element. The disinvestment target of Rs 12,000 crore for the next fiscal is also a good target. With regard to steel, which is my area of functioning, there are indeed some positive features like increase in customs duty of ship breaking scrap from 5 per cent to 15 per cent and of seconds/defective from 25 per cent to 40 per cent. There also have been drop in duty on refractories, spares, zinc, aluminium. With the current situation in steel industry, one would have expected a excise duty cut, which has not happened. Abolishing of dividend tax and investment sops, by additional depreciation of 15 % are welcome. Imposition of security surcharge of 5 per cent in place of the current 2 per cent surcharge as Gujarat earthquake relief fund was a negative step for the corporate sector in general.

* The author is MD, Tata Steel