Infrastructure projects, such as roads, ports, airports, inland waterways etc., are eligible for income tax holiday. In view of the strategic importance of oil and gas facilities such as LNG terminals and pipelines, it is sought that such projects also be given infrastructure status and be made eligible for 10-year income tax holiday.

The 10-year tax holiday benefit under Section 80-IA should be reinstated for natural gas pipelines including crude oil, petroleum products and integral storage facilities. Also, LNG import and regasification projects should be extended similar status.

In the context of cross-country natural gas distribution network, the issue of availability of this benefit to city gas distribution network remains unresolved. A similar incentive needs to be extended to CGD network as well. In addition, CGD infrastructure should also be allowed to avail investmentlinked tax incentives under Section 35AD.

Further, infrastructure status and thereby tax holiday under Section 80-IA should also be provided to the solar energy sector.

Tax incentives should be provided to independent infrastructure service providers so as to ensure that the service provided by them is attractive. The tax benefits which are available to access service providers should be extended to IISPs.

The Income Tax Act under Sec.80-IA (4) extends IT benefits to the telecom operators who are developing their own telecom infrastructure. This benefit should also be extended to the independent infrastructure service providers as well. Moreover, this benefit is available to developers of other infrastructure like roads, ports, highways and water supply projects.