Web Exclusive | July 2014
FM switches on power plug
Our Mumbai News Bueau
The Budget has adequately focused on energy. The beleaguered power sector will find some respite, if the measures announced are implemented properly. There are measures to strengthen the entire power value chain. The Rs 100 crore allocation for super critical ultra modern thermal plants; Rs 500 crore for ultra modern solar projects; the 10-year tax holiday and the rationalisation of coal linkages will facilitate the struggling power producers and put stranded power plants on a recovery course.
The Government’s promise to resolve the existing deadlocks in the coal sector and provide fuel to all projects coming up before March 2015 will be a massive thrust to get the failing sector back on course. This will be a positive for companies whose power projects are near completion. Companies like CESC, Reliance Power, Jaiprakash Power and Adani Power will be beneficiaries.
In addition, deduction in basic customs duty from 10 per cent to 5 per cent on forged steel rings used in the manufacture of bearings of wind operated electricity generators. It will reduce the cost of setting up wind power projects. This could be beneficial for Suzlon Energy.