Budget 2020: Exemption on corporate tax to power NTPC, renewables

The renewable energy sector is elated that the benefit will come to them, given no future pipeline of any thermal power projects

The finance ministry’s decision to offer concessional corporate tax to new power projects will stand to benefit state-owned NTPC and upcoming renewable energy projects.

In her Budget speech on Saturday, Finance Minister Nirmala Sitharaman said the Centre is extending “concessional corporate tax rate of 15 per cent to new domestic companies engaged in the generation of electricity” in order to promote investment in the power generation sector. 

Sector executives, however, said no other company, apart from NTPC, is planning new projects in the thermal power sector.

India’s largest power generating company has 20 gigawatt (Gw) of projects in the pipeline