Union Minister of State (IC) for Power, Coal, New & Renewable Energy and Mines, Piyush Goyal said on Thursday that the Micro, Small & Medium Enterprises (MSMEs) have been made competitive with the announcement in the Budget 2017 over reduction of Corporate Tax to 25% up to turnover of Rs. 50 crores.
These MSMEs, the minister said, are the back bone of any sector and are engaged in various capacities in the power, RE, coal and mines sector as EPC, supplier, operating mines etc. The tax reduction will help in generating surplus cash, which can be re-deployed by these MSMEs in expanding their businesses.
Goyal said the Budget 2017 has provided impetus to transformative changes happening in the Ministry of Power, Coal, New & Renewable Energy and Mines. He added that his ministries (Power, RE, Coal and Mines) have received significant support from the finance minister in terms of allocation of adequate budgetary resources to further various ongoing programmes.
In the New & Renewable Energy Sector, Goyal informed that the Budget has affirmed target for Solar Power of additional 20,000 MW capacity during next year.
Further, the budget has provided renewed thrust on renewables, with the removal/ reduction of customs/ excise duty on Solar tempered glass and other components in the solar sector. This reduction of Customs duties on various raw materials would further bring down the cost of clean energy, he added.
He also mentioned that the Railways will contribute to solar energy by powering 7,000 stations through rooftop solar power, as has been announced in the Budget.
Regarding the allocation for Ministry of Power, Goyal said that it has been increased by 33% to Rs 13,881 crores, due to major thrust on flagship rural electrification scheme Deen Dayal Upadhayaya Gram Jyoti Yojana (DDUGJY).
The allocation for this scheme has been increased by 44% from Rs. 3,350 crores to Rs 4,814 crores, while the contribution to urban areas scheme Integrated Power Development Scheme (IPDS) has been increased by 29% from Rs 4,524 crores to Rs 5,821 crores.
The Budget document has confirmed that “We are well on our way to achieving 100% village electrification by 1st May 2018”, Goyal added.
In the Coal and Mines sector, Goyal said that the Budget lays special emphasis on conservation, safety and infrastructure in coal mines. A number of steps taken includes higher allocation for Ministry of Coal that have been increased by 34% from Rs 556 crore to Rs 745 crore.
Similarly, allocation for Ministry of Mines has been increased by 12% from Rs 1,083 crore to Rs 1,213 crore. “Conservation, Safety and Infrastructure Development in Coal Mines increased by 43% from Rs 350 crore to Rs 500 crore,” he added.
Then in order to benefit domestic aluminium manufacturers, export duty on other aluminium ores including laterite has been imposed at 15%.