Budget 2018: Power Sector Hopes For Boost To Domestic Manufacturers

Budget 2018: Power Sector Hopes For Boost To Domestic Manufacturers

As the government continues to lay emphasis for increased adoption of renewable energy, the power sector hopes for a much-needed thrust to domestic manufacture of equipments in this year’s Union Budget.

In terms of solar power, the levy of safeguard duty on imports of solar equipment, if implemented on immediate basis, is projected to cause significant financial distress in the sector. Therefore, companies urge that this remain outside the purview of the Union Budget 2018-19.

Apart from this, here are some expectations from the sector:

“From the Budget 2018-19, we hope that there are no negative surprises that might stagger this exponential growth. The government should allow enough time for the industry to plan and get prepared for such significant regulatory change and not levy this on immediate basis to avoid significant financial distress on under construction projects. Additionally, while the direct and indirect tax benefits from renewable sector have been evoked, we do hope that the corporate taxes will be lowered in Budget 2018, which is in line with the Government’s vision of a lower tax regime,” said Nikunj Ghodawat, CFO, CleanMax Solar. Read More…

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