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Budget 2016: IPPAI bats for tax incentives for power sector

Seeks 10-year tax holiday to be extended for companies starting power generation by March 31, 2020

BS Reporter  |  New Delhi 

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In the run up to the Union Budget 2016, Indian power producers have proposed to the government a slew of tax benefits to incentivise investments in the sector.

Independent Power Producers Association of India (IPPAI) in a letter to the ministries of finance, coal and power asked the government to extend a 10-year tax holiday to companies that start power generation by March 31, 2020..

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“Industry players have called for the extension of the sunset tax clause for power companies to include plants that provide power till March 2020 as opposed to 2017 earlier,” said the letter.

The association has also asked for minimum alternate tax to be reduced to 10 per cent. With regards to coking coal, IPPAI has asked for reduction in customs duty on it.

“Import duty of coking coal had been increased to 2.5 per cent in the Budget for 2014-15.” It said a negligible quantity of coking coal was available domestically, and therefore called for duty on it to be exempt.

IPPAI has also contested the clean energy cess levied on thermal power producers asking that it should be restricted to only those power producers who do not adopt clean technologies / modernise their plants.

First Published: Tue, January 19 2016. 00:01 IST