- Household savings: Arun Jaitley raises exemption limit, introduces KVP, hikes PPF cap to boost savingsNarendra Modi budgets for economic growth, eschews radical reforms; fiscal deficit plans questionedGovt will not rely on retro tax amendment, says Arun Jaitley in Budget speechBudget impact: Mobile phone prices may go up
over R2.75 lakh crore, to create 55,000 MW of generation capacity, is spread across companies such as NTPC, Sterlite, Indiabulls, Jindal Power, GVK Power, Essar Power, Bajaj Hindustan, Vandana Vidyut, Haldia Energy, Torrent Power and Hinduja National Power. These firms can now plan the commissioning of their units given the certainty of tax treatment. Reliance Power’s Sasan UMPP will also benefit from the tax exemption. The remaining investment is expected to flow into transmission and distribution projects.
The oil and gas industry is disappointed there is no significant proposal to promote R-LNG. “The FM failed to address the issue of unrealistic bidding mechanism. There has also been no mention of promoting R-LNG in other segments which could have encouraged the viability of pipelines and R-LNG terminal for investors to come in,” Manish Aggarwal, partner at KPMG in India, observed.
The FM also proposes to make branded fuel cheaper by around R5/litre by reducing the applicable excise duty from R7.50/litre to R2.35/litre. He has also exempted basic customs duty on re-gassified LNG for supplies to Pakistan.