Budget impact! What's in it for Utilities Sector?

Withdrawal of 80IA benefit under IT Act for development and O&M on or after 1st April, 2017. However investment linked deduction under section 35AD of IT Act to be allowed.

Mar 01, 2016 05:03 IST India Infoline News Service


Utilities – Neutral
Key Announcement Impact
Target to electrify 100% villages by May 01, 2018. Rs.8,500 cr provided for Deendayal Upadhayaya Gram Jyoti Yojna and Integrated Power Development Schemes. Would lead to higher power demand. Positive for all power generation companies
Withdrawal of 80IA benefit under IT Act for development and O&M on or after 1st April, 2017. However investment linked deduction under section 35AD of IT Act to be allowed. Negative for companies availing 80IA benefit
Custom duties on certain capital goods products increased from 7.5% to 10% Negative for power generation companies as this may lead to increase in costs
Clean energy cess on coal increased from Rs. 200/ton to Rs. 400/ton Negative for power generation companies

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