Though heavy industry minister Sontosh Mohan Dev disclosed this, he did not divulge further details. Industry sources said the incentives could be in the form of some excise duty and VAT rebates for disposing off old heavy vehicles as well as extension of depreciation time for commercial vehicles.
It is likely that the proposal would only be considered now by the new government since Election Commissions code of conduct for General Elections will soon come into force preventing the UPA government to give any more sops.
The minister also said the contribution of the countrys capital goods sector to the GDP has come down to 7.1% in 2008-09 from 9% a year ago.
This is slightly alarming. I understand that. Since
September 2008, the capital goods sector is experiencing a decling trend, the minister said.
He said the sector was adversely impacted by cheap imports. However, according to agency reports, the CoS has asked the ministry to restrain from imposing frequent restrictions, if not backed by proof, as it may flout WTO norms.