Budget 2014-15: Speech of Arun Jaitley, Minister of Finance

COMMENTS/ RESPONSES ON BUDGET 2014-15

Mr. Tulsi Tantri

Budget promotes manufacturing led growth, infrastructure and clean energy





· This is a growth oriented and futuristic budget.



· The big shift in policy initiatives will revive and promote manufacturing thereby paving the way for 7% growth



· Key announcements on investments in physical infrastructure development, direct allowances for new investment in Plant & Machinery, FDI, GST implementation and long term financing options are likely to boost manufacturing. Wind Energy (clean) given a top priority



· Extending of 10 yr tax holiday for power companies by 31 st March, 2017, provides much required predictability for investors investing in power projects. The target of the new government is to provide 24/7 uninterrupted power supply to all homes augurs well for the growth of energy sector in India.



· The budget proposal to increase clean energy cess from Rs.50 per ton to Rs.100 per ton for financing and promoting will indeed be a major boost for Wind energy in particular. The Clean Energy Fund will now be doubled annually from 4000 Cr



· Investment allowance along with continuation of additional depreciation (Total -60%) is also likely to benefit SMEs who would like to invest in the wind sector .



· The FM provided much awaited relief in the form of exempting special additional duty of 4% on parts and materials required for the manufacturing of wind operated generators.



· Early execution of the Green Energy Corridor Project is also likely to act as catalyst in evacuation of power from wind.

 

All these measures are likely to boost investment in the Wind energy sector which is likely to grow by 50% in 2014-15..

Mr. Anil Chaudhry, Country President and Managing Director,

Schneider Electric India

“Smart city lies at the heart of the Union Budget of the new government. The allocations and the measures announced now gives shape to the Mr Narendra Modi’s initial idea of 100 smart cities. The Government has made an allocation of Rs 7060 crore - an enabling factor that will boost the planning and development of the smart cities. And to compliment it, the Government has incisively identified 7 corridors. Overall, these are very promising preamble to the realization of the smart city concept. It now needs to be seen how the details are worked out by the Government.

The budget has adequately focused on energy, in sync with the new Government’s vision, and announced various measures that will benefit in ensuring sustained growth for the sectors. The reeling power sector will find some respite, if the measures announced in the budget are implemented properly. There are measures accounted to strengthen the entire power value chain. From Rs 100 crore allocation for super critical ultra modern thermal power to the rationalization of coal linkages will facilitate the struggling power producers and put the stranded power plants on a rebound course. The Government’s promise to resolve the existing deadlocks in coal sector and provide fuel to all projects coming up before March 2015 will be a massive thrust to get the flailing sector on course to meet the Government’s 12 th Plan target of 88,000 MW.

The Budget has adequately focused on the solar energy sector. Rs 500 crore allocation for ultra-modern solar power projects will give the deserving boost to solar companies to increase generation capacity which is currently a mere 1 % of India’s total energy production. Rs 100 crore for the development of 1 MW solar parks on the banks of canals and Rs 400 crore for setting up solar power driven pump sets are some unique measures introduced that will further drive utilization of solar energy and reduce our dependency on conventional energy resources. Implementation of the Green energy Corridor Project will be a great move to integrate channels for evacuation of solar power – a formidable challenge for generating companies at the moment. The removal of customs and excise duties on solar equipment on the other hand will incentivize indigenous companies to increase domestic manufacturing and reduce reliance on import. These are most welcoming moves.”