Union Budget 2015: Distribution reforms, longer tax holiday to help power cos

Written By Unknown on Kamis, 12 Februari 2015 | 15.45

According to brokerage house Morgan Stanley, there has to be better railway logistics for coal evacuation so that railways don't end up becoming the bottleneck

Moneycontrol Bureau

Distribution reforms, such as priovatization and financial restructuring plans, extension of tax holiday, removal of Minimum Alternate Tax, and incentives for renewable power find a mention in the wish list of power utilities.

According to brokerage house Morgan Stanley, there has to be better railway logistics for coal evacuation so that railways don't end up becoming the bottleneck.

Rating agency CARE feels an extension of the 10-year tax holiday beyond 2017 would be beneficial for companies whose projects would come up in the 13th Plan.

Also, CARE feels allocation of funds for strengthening sub-transmission
and distribution systems in rural areas would help curtail aggregate technical and commercial (AT & C) losses.

Brokerage house Goldman Sachs expects incentives and tax exemptions to domestic manufacturers of renewable power equipments, which in turn will promote installation of renewable power


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