It also announced the reduction of 4 per cent cenvat rate that can be passed on by the auto makers to customers and help clear inventory.
It also asked public sector banks to formulate separate package for home buyers."It is a well-timed announcement. It will allow soft landing for the economy," said Venu Srinivasan, chairman and managing director, TVS Motors. "The two-wheeler industry will benefit, but the government needs to do more on infrastructure projects so that the commercial vehicle segment can benefit. The infrastructure sector, however, felt the package was insufficient and wanted additional measures. "The government's package is inadequate. We expected at least $20 billion relief package, giving emphasis to the infrastructure sector. The current measures are insufficient to deal with the deepening crisis," said Subba Rao, CFO, GMR Group. "Capital formation is in danger. Equity and debt is not available, and a lot of projects are struggling. IIFCL will refinance banks Rs 10,000 crore (Rs 100 billion), which is good enough to just produce 2,000 MW of power when we need 80,000 MW," he added.
