Budget Wishlist: Power

CEOSPEAK: S K Chaturvedi, Chairman and MD, Powergrid Corporation of India Limited

EXEMPTIONS AND TAX HOLIDAY - THE WAY FORWARD

We expect certain exemptions for the power sector in the coming budget. For example, the excise duty exemptions that are currently available to power developers for mega projects, should be made available for transmission companies too. Also, excise duty exemptions in power equipment should be reconsidered otherwise you can not attract investments.

Chamber-Speak

FICCI
Considering the slow pace of capacity additions during the preceding five-year plans and the need for meeting the ever-growing demand for power, tax holiday benefit for the generation and distribution of power ought to be extended beyond March 2010, by at least five years.

CII
Do not provide free electricity to certain economic groups as practicised in several states. This is critical to ensure commercial and financial viability of the power sector. Also, strengthen APDRP programme structure and formulate milestones with State Electricity Boards. The government should link central assistance to states to reduction in T&D losses. Power shortage issue should be addressed through framing and implementing regulations and through the creation of wholesale power market.