The thermal power generation units which would commission post March 2017 would see their cost rising by at least 10-15 paisa per unit. This comes as a result of Central government not extending the 80-IA tax holiday beyond April 2017 for the infrastructure projects including power generation. Renewable energy projects might escape the cost escalation.
“The overall increase in cost of power generation after the tax holiday expires would lead to escalation in final power rates would be close to 10 paisa per unit. The amount is pass-through on the consumers,” said A K Khurana, Director General of Association of Power Producers.
The central government is of the view as the tax holiday is availed post the power units start making profits, the impact would be very project specific. Read More…
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