Budget 2016-17 to have positive impact on Power
INVC NEWS New Delhi, Piyush Goyal, Minister of State (IC) for Power, Coal and New & Renewable Energy, in a media briefing here today, urged people to monitor work of his ministries and to bring forth any deficiencies in working of system. The Minister said that the feedback from people help Government to work efficiently. On the occasion, Shri Goyal felicitated Shri Dinesh Arora , ED, REC for achieving one-third of the rural electrification target, thereby electrifying more than 6000 villages across the country. He also felicitated Shri Venkatesh Diwedi GM, Technical, Energy Efficiency Services Limited ( EESL) for crossing distribution of 7 crore LED bulbs and thus contributing immensely in Government’s drive for energy efficiency. The Minister also launched GARV newsletter for rural electrification on the occasion. While highlighting various budget proposals relating to Power, Coal & Renewable Energy sectors , Shri Piyush Goyal informed that the annual allocation for DDUGJY has been increased by 66% from Rs. 5100 crore (BE 2015-16) to Rs.8500 crore. This is a positive development making more funds available for improving distribution infrastructure. He said that assessee engaged in the business of transmission of power shall be allowed additional depreciation at the rate of 20% of actual cost of new machinery or plant acquired and installed in a previous year. This will be beneficial for POWERGRID and other transmission companies and help increase transmission capacity at lower cost. “PFC and REC have been included in the list of organisations who would be allowed to raise bonds during 2016-17”, he added. Shri Goyal stated that a budget proposal will be incorporated in CST Act which will allow application of CST rate on inter-state transfer of gas for Gas based plants. The Minister also mentioned that the benefit of concessional custom and excise duty (proposed in budget) would be available to power generation projects based on municipal and urban waste. This will result in reduction in the cost of generation of power. Talking about Budget proposals of Coal Sector, Shri Piyush Goyal appreciated the increased coal production in the country. He informed that Coal India Limited has registered 9.2% growth in coal production in the duration of April 2015 to February 2016 in comparison to 8.25% growth registered during 2014-15. The Minister delightedly told that this is the highest coal production growth in over two decades. He also said that the basic Customs Duty on Heavy Earthmoving Machinery (HEMM), other than dumpers has now been proposed to be enhanced from 7.5% to 10% i.e. an increase of 2.5%. The step is envisaged to help domestic manufacturers to support Make in India. Referring to Renewable Energy Sector, Shri Goyal said that the Budget 2016-17 has proposed to levy Clean Environment Cess at Rs.400 per tonne, which will be used for development of renewable energy resources and various environmental protection measures. He informed that Plan Outlay to support Renewable Energy has been increased from Rs. 2,509 Crore in 2014-15 to Rs. 4,246 Crore in 2015-16; and further to Rs. 5,000 Crore in 2016-17 budget. The Minister told that Budget 2016 has provisions to mobilize funds at cheaper rate to ensure availability of cheaper power to the ultimate consumers. In his media interaction, Shri Goyal said reiterated that out of un-electrified villages, about 3000 villages to be electrified through renewable energy sources under the DDUJGY scheme. The budget also proposes 100% deduction of projects for 3 out of 5 years to Start-ups. It will encourage the entrepreneurs for rise startups in RE sector. A Special patent regime with 10% rate of tax on income from exploitation of patents is mentioned in the budget to give fill up to entrepreneurs to adoption of new technologies in RE sector. Shri Goyal said that solar pumps for irrigation and the pumps based on biomass likely to get the fill up in 28.5 lakh hectares which is to be brought under irrigation. He further stated that solar lamp being exempted from excise duty from 25% to NIL and Basic Custom duty on Industrial solar water heaters increased from 7.5% to 10%.