Power and Renewable energy sector .
One of the major announcement by the Finance minister Nirmala Sitharaman was – a total amount of Rs 22,000 Crore has been allocated to the Power and renewable Energy sector for the Financial year 2021. As compared to Rs 5000 Crore allowance for the Ministry of New and Renewable Energy in the last three years.The companies that distribute power were under financial stress. The renewable energy and the power sector need had urged the state government to set up smart meters in the next three years that will provide the consumers the right to select suppliers and the rate. The Smart Pre-paid meters will reduce the cost of manual metering, collection and billing. It will increase the efficiency of the service mechanism.
Increasing the Concessional corporate tax rate of 15% to new domestic companies engaged in the generation of electricity. With the aim to boost the electricity generation, the Union Budget 2020 has proposed the concessional tax rate. It will be applicable to the new domestic companies that are involved in the generation of electricity. It will boost the greenfield power project. The lack of demand and poor financial ability of the state run- discoms created distress , several plants come under stress in the power sector. It will provide relief to the companies that are going to make fresh investment in the sector. Companies for Example- Adani, TATA, JSW Energy, Vedanta are going to extend there footprints in the power sector. Impact: It will promote investment in the power sector.
Basic custom duty on some specified goods required in high voltage transmission projects increased from 5% to 7.5 % The aim with regard to rising the custom duty is to drive the local manufacturing of such equipments and discourage the poor quality Chinese import. But the companies perspective is the tariff increase made through an enabling mechanism is going to effect the business negatively. The rising domestic market for solar is dominated by companies of China due to their competitive pricing. India, the world’s third-largest energy consumer after the US and China, has a manufacturing capacity of 3 gigawatts (GW) for solar cells and imported $2.16 billion of solar panels, photovoltaic cells, and modules in 2018-19. Impact:Power Generation companies like NTPC Setting up new power companies is going to benefit .
Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan: The Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan was launched by the Ministry of New and Renewable Energy . The Scheme aims to add solar and other renewable capacity of 25,750 MW by 2022.The Central Government has supported with Rs 34,422 Crore that also includes the service charges to the implementing agency. PM – KUSUM Yojana expended to 20 Lakh farmers for setting up stand -alone solar pumps. Impacts: It will benefits the Solar Pump manufacturers .It will open a source of income to the land owners of the rural area for the period of 25 years by the use of there uncultivable land. The solar pump will reduce the cost that are incurred on diesel for running diesel pumps.It will support the farmers with reliable mechanism for irrigation through solar pump as compared to the harmful pollution from the running diesel pumps.This project will benefit 17.5 lakh farmers over the period of 4 years.