INDIRECT TAXES
| Positive Budget for power sector: Tata Power Fri, 16 Mar 2012 18:58:05 +0530 |
| Business Standard Economy Policy News The government today proposed a slew of measures including customs duty exemption on imported fuel and lower levy on overseas funds for projects to provide relief to crisis-hit power sector. Tata Power welcomed the Finance Minister’s recommendations for economic recovery, spurring growth, removing bottlenecks and promoting Public Private Partnerships. The extended tax incentives, the decision to allow ECBs, and reinforcement of intention to introduce DTC and GST in the near future should create a positive investment climate. In line with Tata Power’s focus and investment plans in the renewable energy space, we welcome the government’s continued interest in giving a boost to solar energy projects. The waiver for thermal power companies will be beneficial for upcoming projects. The removal of customs duty on imported coal, natural gas, LNG, and the incentives for the mining sector will marginally improve coal supply, but is still a far cry from achieving adequate fuel security. However, other measures including the Fuel Supply Agreements with Coal India should provide some relief. However, we expect stronger sustained steps to be taken beyond the Budget, to address the core issues faced by the power sector. -- Anil Sardana, Managing Director, Tata Power |
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