Shri Piyush Goyal urged people to monitor ministry’s work to provide valuable feedback
Shri Piyush Goyal urged people to monitor ministry’s work to provide
valuable feedback
Budget 2016-17 to have positive impact on Power, Coal & RE Sectors
Budget 2016-17 to have positive impact on Power, Coal & RE Sectors
Shri Piyush Goyal, Minister of State (IC) for Power,
Coal and New & Renewable Energy, in a media briefing here today, urged
people to monitor work of his ministries and to bring forth any deficiencies in
working of system. The Minister said that the feedback from people help
Government to work efficiently.
On the occasion, Shri Goyal felicitated Shri Dinesh
Arora , ED, REC for achieving one-third of the rural electrification target,
thereby electrifying more than 6000 villages across the country. He also
felicitated Shri Venkatesh Diwedi GM, Technical, Energy Efficiency Services
Limited ( EESL) for crossing distribution of 7 crore LED bulbs and thus
contributing immensely in Government’s drive for energy efficiency. The
Minister also launched GARV newsletter for rural electrification on the
occasion.
While highlighting various budget proposals relating
to Power, Coal & Renewable Energy sectors , Shri Piyush Goyal informed that
the annual allocation for DDUGJY has been increased by 66% from Rs. 5100 crore
(BE 2015-16) to Rs.8500 crore. This is a positive development making more funds
available for improving distribution infrastructure. He said that assessee
engaged in the business of transmission of power shall be allowed additional
depreciation at the rate of 20% of actual cost of new machinery or plant
acquired and installed in a previous year. This will be beneficial for
POWERGRID and other transmission companies and help increase transmission capacity
at lower cost. “PFC and REC have been included in the list of organisations who
would be allowed to raise bonds during 2016-17”, he added. Shri Goyal
stated that a budget proposal will be incorporated in CST Act which will allow
application of CST rate on inter-state transfer of gas for Gas based plants.
The Minister also mentioned that the benefit of concessional custom and excise
duty (proposed in budget) would be available to power generation projects based
on municipal and urban waste. This will result in reduction in the cost of
generation of power.
Talking about Budget proposals of Coal Sector, Shri Piyush Goyal appreciated
the increased coal production in the country. He informed that Coal India
Limited has registered 9.2% growth in coal production in the duration of April
2015 to February 2016 in comparison to 8.25% growth registered during 2014-15.
The Minister delightedly told that this is the highest coal production growth
in over two decades. He also said that the basic Customs Duty on Heavy
Earthmoving Machinery (HEMM), other than dumpers has now been proposed to be
enhanced from 7.5% to 10% i.e. an increase of 2.5%. The step is envisaged
to help domestic manufacturers to support Make in India.
Referring to Renewable Energy Sector, Shri Goyal said that the Budget 2016-17
has proposed to levy Clean Environment Cess at Rs.400 per
tonne, which will be used for development of renewable energy resources and
various environmental protection measures. He informed that Plan Outlay to
support Renewable Energy has been increased from Rs. 2,509 Crore in 2014-15 to
Rs. 4,246 Crore in 2015-16; and further to Rs. 5,000 Crore in 2016-17 budget.
The Minister told that Budget 2016 has provisions to mobilize funds at cheaper
rate to ensure availability of cheaper power to the ultimate consumers.
In his media interaction, Shri Goyal said reiterated
that out of un-electrified villages, about 3000 villages to be electrified
through renewable energy sources under the DDUJGY scheme. The budget also
proposes 100% deduction of projects for 3 out of 5 years to Start-ups. It will
encourage the entrepreneurs for rise startups in RE sector. A Special patent
regime with 10% rate of tax on income from exploitation of patents is mentioned
in the budget to give fill up to entrepreneurs to adoption of new technologies
in RE sector. Shri Goyal said that solar pumps for irrigation and the pumps
based on biomass likely to get the fill up in 28.5 lakh hectares which is to be
brought under irrigation. He further stated that solar lamp being exempted from
excise duty from 25% to NIL and Basic Custom duty on Industrial solar water
heaters increased from 7.5% to 10%.
The brief details of Budget Proposals concerning
Power, Coal & Renewable Energy Sectors are as follows :
Highlights of the Budget
2016-17 – Ministry of Power
· Increased allocation for
DDUGJY and IPDS schemes. The annual allocation has been increased by 66% from
Rs. 5100 crore (BE 2015-16) to Rs.8500 crore. This is a positive development making
more funds available for improving distribution infrastructure. Total
Annual Plan outlay for the Ministry of Power has been increased from Rs. 6800
crore (BE 2015-16) to Rs. 12200 crore in BE 2016-17. This increase
is mainly due to enhancement in budget allocation for the above two schemes and
for Power System Development fund (PSDF) for which the allocation has
been increased from Rs. 300 crore (BE –2015-16) to Rs. 1900 crore (BE
2016-17).
· Additional depreciation
for transmission companies from FY18. [Section 32(1)(iia) of the IT Act].
Assessee engaged in the business of transmission of power shall also be allowed
additional depreciation at the rate of 20% of actual cost of new machinery or
plant acquired and installed in a previous year. This will be beneficial
for POWERGRID and other transmission companies and help increase transmission
capacity at lower cost.
· PFC and REC have been included in the list of
organisations who would be allowed to raise bonds during 2016-17. This
would provide additional resources for these two Power Financing Companies
during the next financial year.
· The Ministry is implementing a Scheme of Utilisation
of Gas based power generation capacity which envisages provision of subsidy to
DISCOMs to procure power from stranded and domestic gas based power plants. The
Budget document proposes to amend Section 3 of the CST Act and seeks to insert
an explanation as under :
‘where the gas sold or
purchased and transported through a common carrier pipeline or any other common
transport distribution system becomes co-mingled and fungible with other gas in
the pipeline for system and such gas is introduced into the pipeline or system
in one state and taken out from the pipeline in another state, such sale or
purchase of gas shall be deemed to be a movement of goods from one state to
another’
This explanation proposed to be
incorporated in the CST Act will obviate the need to issue separate
notification by Centre/States which is currently the case. This will be a
contribution to procedural improvement.
• Valid agreement between importer / producer of power
with urban local body for processing of municipal solid waste for not less than
ten years from the date of commissioning of project” being provided as an
alternative condition for availing concessional customs/excise duty benefits in
case of power generation project based on municipal and urban waste.
Impact: The benefit of concessional
custom and excise duty would be available to power generation projects based on
municipal and urban waste. This will result in reduction in the cost of
generation of power.
· The Budget Speech in para 40, 41 and 81
appreciations work done in the area of Rural Electrification, transmission and
generation and replacement of incandescent & CFL lighting with LED lighting
by the Ministry of Power as:
“40. As on 1st April, 2015, a
total of 18,542 villages were not electrified. The Honourable Prime Minister,
in his address to the Nation on 15th August, 2015 announced that the remaining
villages will be electrified within the next 1000 days.
41. As on 23rd February, 2016, 5542
villages have been electrified. This is more than the total combined
achievement of previous three years. The Government is committed to achieve
100% village electrification by 1st May, 2018…
81. In the other segments of the infrastructure
sector, our Government has achieved the highest coal production growth in over
two decades, highest ever capacity addition in generation, highest ever
increase in transmission lines and in distribution of LED bulbs.”
Highlights of the Budget 2016-17 – Ministry of
Coal
· Clean Environment Cess :
The Budget 2016-17 has proposed to levy Clean
Environment Cess at Rs.400 per tonne, which will be used for development of
renewable energy resources, various environmental protection measures including
Project Tiger, Wild Life Conservation and abatement of river pollution,
etc.
Though the proposed enhancement has a nominal impact
12 Paise per unit on power generation, it would however help in addressing
critical environmental issues, particularly development of clean technologies
and promoting wild life conservation, abatement of river pollution, etc.
which are of serious concern of the entire nation and nee dto be addressed on
high priority.
When compared to this more the of Rs. 1,80,000 Crores
under UDAY from 2019 onwards, this increase will be quite small.
· Customs Duty on Heavy Earthmoving Machinery (HEMM) :
The basic Customs Duty on HEMM other than dumpers has
now been proposed to be enhanced from 7.5% to 10% i.e. an increase of
2.5%. This is envisaged to help the domestic manufacturers to support
Make in India.
· Highest coal production growth in over two decades :
Growth
in all India coal production in 2014-15 : 8.25%
Growth
in production from April, 2015 to February, 2016 :
CIL
– 9.2 %; SCCL – 18%
· Basic Custom Duty (BCD) on Coal & lignite revised
to 2.50% from 2.50% / 10%.
Impact: This will lead to reduction
in the cost of lignite
Highlights of the Budget 2016-17: Ministry of New
& Renewable Energy
• Plan Outlay to support Renewable Energy has been
increased from Rs. 2,509 Crore in 2014-15 to Rs. 4,246 Crore in 2015-16; and
further to Rs. 5,000 Crore in 2016-17 budget. This will help in implementation/
expansion of renewable energy programmes to reach the target of 175 GW by 2022.
• Clean Environment Cess will enhance the funds
available for promoting renewable energy projects and the infrastructure
associated with it.
• Inverted Duty Corrected
This correction will lead to reduction in the capital
cost of the wind power equipments, which in turn will reduce the cost of
generation of power from wind power projects.
Excise duty on carbon pultrusions used for manufacture
of rotor blades, and intermediates, parts and sub-parts of rotor blades for
wind operated electricity generators reduced from 12.50% to 6%.
• Cheaper funds to boost investment in renewables
o Mobilisation
of additional finances to the extent of Rs 31,300 crore by NHAI, PFC, REC,
IREDA, NABARD and Inland Water Authority by raising Bonds.
o Dedicated
fund to provide credit enhancement to infrastructure projects by LIC. Renewable
Energy projects may likely to get the share in the proposed dedicated fund.
o Impact:
It will help FIs to mobilise the funds at a cheaper rate which in turn will
make the funds available for the development of the power sector particularly
for projects of national importance and ensure availability of cheaper power to
the ultimate consumers.
• Electrification of Villages:
As on 1st April, 2015, a total of 18,542 villages were
not electrified. The Honourable Prime Minister, in his address to the Nation on
15th August,2015 announced that the remaining villages will be electrified
within the next 1000 days .As on 23rd February, 2016, 5542 villages have been
electrified.
Out of total un-electrified villages, about 3000
villages to be electrified through renewable energy sources which will enhance
the demand for renewables.
• Boost to Start up India
100% deduction of projects for 3 out of 5 years to
Start-ups .It will encourage the entrepreneurs
for rise startups in RE sector.
• Make in India
Special patent regime with 10% rate of tax on income
from exploitation of patents. It will give fill up to entrepreneurs to adoption
of new technologies in RE sector.
• Pradhan Mantri Krishi Sinchai Yojana – 28.5 lakh hectares will be brought under
irrigation. Solar
pumps for irrigation and the pumps based on biomass likely to get the fill up
due to this announcement.
• Make in India
- Basic Custom duty on Industrial solar water
heaters increased from 7.5% to 10%. Imports likely to become
costlier and will provide boost to domestic manufacturers.
- Basic Duty Exemption on solar tempered
glass/solar tempered glass withdrawn and 5% concessional
imposed. Imports
likely to become costlier and will provide boost to domestic
manufacturers.
• Solar lamp being exempted from excise duty from 25% to
NIL. Solar lamps/lanterns will become cheaper and their demand likely to boost
in excessible in rural areas,
• Promote entrepreneurs among SC/ST and women – 2.5 lakh
entrepreneurs to be created
Decentralized renewables likely to get boost as new entrepreneurs likely to
enter in the sector.
*************
Inter- Regional Power
Transfer capacity enhanced by 71% in southern region in last 18 months: Shri
Piyush Goyal
Transmission schemes comprising 2500 Circuit KMS transmission lines and 4 new 765 KV & 400 KV sub-stations planned for West Bengal
Govt plans to spend Rs 3500 crore to boost Inter State Transmission System
Transmission schemes comprising 2500 Circuit KMS transmission lines and 4 new 765 KV & 400 KV sub-stations planned for West Bengal
Govt plans to spend Rs 3500 crore to boost Inter State Transmission System
Shri
Piyush Goyal, Minister of State (IC) for Power, Coal and New & Renewable
Energy, in a media briefing organized here today, said that transmission sector
has always been a priority area for the government. He said that the Power
Ministry has already exceeded this year’s transmission target. Shri Goyal gave
details of various Transmission projects being undertaken in Southern Region ,
West Bengal and North Eastern Region ( NER) , which will help improving overall
transmission systems in these regions.
Southern Region
Shri Piyush Goyal told that the inter regional power transfer capacity to Southern Region has been enhanced by 71% (2450 MW) in last 18 months and at present it is 5,900MW. He informed that this step has greatly facilitated southern region states to access power from resource rich areas. The synchronous connection of Southern grid with rest of the nation has led to reduction in exchange rate of power from Rs. 6-7 per unit to Rs. 3-4 per unit. On few days, one price across the entire country has been achieved, meaning thereby that there was no congestion, he added. The Minister also informed that various new links have been taken up for implementation to enhance power transfer capacity to Southern Region with an estimated cost of Rs. 38,000 Crore. This includes 6000 MW, ±800kV HVDC Bipole system between Raigarh (Western Region) and Pugalur (Southern Region). The power transfer capacity to Southern Region shall be enhanced progressively to about 17000 MW by 2019-20.
West Bengal :
Speaking on the occasion, Shri Goyal stated that in order to strengthen the inter-state transmission system in West Bengal, new transmission schemes comprising of about 2500 circuit kms transmission lines and 4 new 765 kV & 400 kV sub-stations have been planned. These schemes include interconnection between Northern and Southern part of West Bengal, new sub-stations near Kolkata (Rajarhat, Jeerat ) & Kharagpur, HVDC/AC station at Alipurduar and first 765 kV line in West Bengal at an estimated cost of about Rs 10000 Crores . These schemes shall go a long way in enhancing the power exchange between National Grid and West Bengal as well as in importing power from new hydro projects in Bhutan.
North Eastern Region :
Shri Goyal further said that a 400 kV ring system along with 5 new 400 kV sub-stations has been planned to provide a quantum boost to inter-state transmission system in NER, at an estimated cost of about Rs. 3500 crore. This interconnection shall facilitate enhanced exchange of power among states within NER as well as between NER and other parts of the country. These schemes are planned to be commissioned progressively by 2019-20. He added that a comprehensive scheme for strengthening of intra-state transmission and distribution system in all NER States including Sikkim comprising of about 8000 circuit kms transmission & distribution lines and 234 transmission & distribution sub-stations has been approved by Govt of India at an estimated cost of about Rs. 10,000 Crore. The scheme is being implemented by POWERGRID. The scheme covers entire area of NER and shall make the intra state system strong enough to cater to power demand of NER states for next 10 years. This scheme is planned to be commissioned progressively over next 3-4 years.
The Minister told that recently, an 1800 km. long ± 800kV, 6000 MW multi-terminal HVDC line from Bishwanath Chariyali (Assam) in NER to Agra in NR along with 1500 MW terminals at Bishwanath Chariyali (NER) & Agra (NR) has been commissioned at an estimated cost of about Rs. 9000 Crore. The HVDC terminal capacity is to be enhanced to 3000 MW by 2016. This link shall give a boost to hydro power development in NER and can also facilitate transfer of power to NER in case of power deficit situation.
Southern Region
Shri Piyush Goyal told that the inter regional power transfer capacity to Southern Region has been enhanced by 71% (2450 MW) in last 18 months and at present it is 5,900MW. He informed that this step has greatly facilitated southern region states to access power from resource rich areas. The synchronous connection of Southern grid with rest of the nation has led to reduction in exchange rate of power from Rs. 6-7 per unit to Rs. 3-4 per unit. On few days, one price across the entire country has been achieved, meaning thereby that there was no congestion, he added. The Minister also informed that various new links have been taken up for implementation to enhance power transfer capacity to Southern Region with an estimated cost of Rs. 38,000 Crore. This includes 6000 MW, ±800kV HVDC Bipole system between Raigarh (Western Region) and Pugalur (Southern Region). The power transfer capacity to Southern Region shall be enhanced progressively to about 17000 MW by 2019-20.
West Bengal :
Speaking on the occasion, Shri Goyal stated that in order to strengthen the inter-state transmission system in West Bengal, new transmission schemes comprising of about 2500 circuit kms transmission lines and 4 new 765 kV & 400 kV sub-stations have been planned. These schemes include interconnection between Northern and Southern part of West Bengal, new sub-stations near Kolkata (Rajarhat, Jeerat ) & Kharagpur, HVDC/AC station at Alipurduar and first 765 kV line in West Bengal at an estimated cost of about Rs 10000 Crores . These schemes shall go a long way in enhancing the power exchange between National Grid and West Bengal as well as in importing power from new hydro projects in Bhutan.
North Eastern Region :
Shri Goyal further said that a 400 kV ring system along with 5 new 400 kV sub-stations has been planned to provide a quantum boost to inter-state transmission system in NER, at an estimated cost of about Rs. 3500 crore. This interconnection shall facilitate enhanced exchange of power among states within NER as well as between NER and other parts of the country. These schemes are planned to be commissioned progressively by 2019-20. He added that a comprehensive scheme for strengthening of intra-state transmission and distribution system in all NER States including Sikkim comprising of about 8000 circuit kms transmission & distribution lines and 234 transmission & distribution sub-stations has been approved by Govt of India at an estimated cost of about Rs. 10,000 Crore. The scheme is being implemented by POWERGRID. The scheme covers entire area of NER and shall make the intra state system strong enough to cater to power demand of NER states for next 10 years. This scheme is planned to be commissioned progressively over next 3-4 years.
The Minister told that recently, an 1800 km. long ± 800kV, 6000 MW multi-terminal HVDC line from Bishwanath Chariyali (Assam) in NER to Agra in NR along with 1500 MW terminals at Bishwanath Chariyali (NER) & Agra (NR) has been commissioned at an estimated cost of about Rs. 9000 Crore. The HVDC terminal capacity is to be enhanced to 3000 MW by 2016. This link shall give a boost to hydro power development in NER and can also facilitate transfer of power to NER in case of power deficit situation.
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