In order to bring about uniformity and target concessions to the right segments, the government will decide on the segments that will be classified under infrastructure sector.
Reserve Bank of India perhaps has the widest definition of infrastructure that includes construction of educational institutions and hospitals.
While Insurance Regulatory and Development Authority (IRDA) follows a definition that is similar to that of RBI, Income tax department has a separate list of infrastructure industries under Section 80-IA (4) of the Income Tax Act that are eligible for tax concessions. The National Statistical Commission, led by C Rangarajan, has defined infrastructure based on certain attributes, says a paper put out by the Planning Commission on definition of infrastructure.
A finance ministry official said the thinking was in an advanced stage and that the government hopes to finalise the new definition in a month or two.
The official said if we want to include education as infrastructure then we need to deliberate whether the entire spending on education or just the creation of buildings and labs etc should be labelled as infrastructure.
Finance minister Pranab Mukherjee had announced a number of measures in the Union budget 2011-12 to spur investment in physical assets, now a clear priority for the country's top policymakers.
The finance ministry will hold consultations with other ministries before freezing new rules for redefinition.
