Union Budget 2015: Infra funds, zero MAT to boost sector returns, says Morgan

Written By Unknown on Rabu, 11 Februari 2015 | 21.03

Morgan Stanley has also suggested removal or reduction in the inverted duty structure in some capital goods sector

Moneycontrol Bureau

Removal of Minimum Alternate Tax from infrastructure projects is key to improving returns on infrastructure projects, says brokerage house Morgan Stanley in its Budget expectations report.

"Currently, MAT nearly negates the benefit of Sec 80 IA. Its removal would help bump up returns on infrastructure projects by deferring cash outflows," said the Morgan Stanley report.

It has also suggested removal or reduction in the inverted duty structure in some capital goods sector.

It has suggested setting up of more infrastructure funds to ease the problem of inadequate capital that is choking infrastructure companies.

GVK Power stock price

On February 11, 2015, GVK Power & Infrastructure closed at Rs 9.85, up Rs 0.38, or 4.01 percent. The 52-week high of the share was Rs 20.85 and the 52-week low was Rs 8.51.


The latest book value of the company is Rs 15.69 per share. At current value, the price-to-book value of the company was 0.63.


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