Arun Jaitley lights up power sector in Union Budget 2014

Jul 11 2014, 11:38 IST
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The  tax holiday for power units provided by Arun Jaitley will  benefit projects worth over Rs 5 lakh crore being implemented under the  12th Plan programme. The tax holiday for power units provided by Arun Jaitley will benefit projects worth over Rs 5 lakh crore being implemented under the 12th Plan programme.
SummaryProposes schemes to promote clean energy, tax holiday extension, national gas grid and rationalising coal linkages, but no plan to reform LPG pricing

over R2.75 lakh crore, to create 55,000 MW of generation capacity, is spread across companies such as NTPC, Sterlite, Indiabulls, Jindal Power, GVK Power, Essar Power, Bajaj Hindustan, Vandana Vidyut, Haldia Energy, Torrent Power and Hinduja National Power. These firms can now plan the commissioning of their units given the certainty of tax treatment. Reliance Power’s Sasan UMPP will also benefit from the tax exemption. The remaining investment is expected to flow into transmission and distribution projects.

The oil and gas industry is disappointed there is no significant proposal to promote R-LNG. “The FM failed to address the issue of unrealistic bidding mechanism. There has also been no mention of promoting R-LNG in other segments which could have encouraged the viability of pipelines and R-LNG terminal for investors to come in,” Manish Aggarwal, partner at KPMG in India, observed.

The FM also proposes to make branded fuel cheaper by around R5/litre by reducing the applicable excise duty from R7.50/litre to R2.35/litre. He has also exempted basic customs duty on re-gassified LNG for supplies to Pakistan.

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