Presentation on theme: "Offers to promote macroeconomic condition of the country which will boost also infra sector, particularly power sector. Containing the Current Account."— Presentation transcript:
Offers to promote macroeconomic condition of the country which will boost also infra sector, particularly power sector. Containing the Current Account deficit to 4.6% of GDP will help stabilize the currency which in turn will be favourable for power developers importing Electro-Mechanical equipment, which has been the trend since last few years. Reduction in excise duty from 12% to 10% on Capital Goods will help power sector reduce the capital cost on BTG if it is sourced from domestic manufacturers like BHEL, ALSTOM etc. This coupled with continued support to PPP projects should lead to spurt in project activities in FY 14-15. Vote - on -Account or Interim budget 2014
Cabinet Committee on Investment and Project Monitoring group would continue which will boost the industry sentiment as it could remove the policy logjam. Provision of Rs. 11,200 crore towards capital infusion to Public Sector bank is likely to increase liquidity in system which could result in providing boost to the power industry. Government has set creation of new financing structures for long term funding of infra projects as one of the ten tasks for FY 14-15. This, if implemented by new Government post election, would boost greatly to infra projects.
Four ultra mega solar power projects each with a capacity of over 500MW will give tremendous impetus to Solar sector. This would increase the flurry of activities in solar sector. Additionally, setting up of Research Funding Organization shall encourage activities in solar R&D to reduce the cost and increase the efficiency of solar panel in order to bring it further closer to grid price Overall, this interim budget sends a positive signal to industry and investors which itself is very encouraging for sector. Hopefully, new government would further sharpen the provisions already enunciated in this budget. Ratul Puri, Chairman, Hindustan Powerprojects