Policy Wise: India’s Power Sector

Power sector’s demands from upcoming budget

The overall impact of present taxation regime at both Central and state levels leads to higher price of power.

  1. The inclusion of power and coal sectors in GST regime will result in lowering of bulk power, retail tariff and support the Make In India.
  2. Inclusion of power, coal and natural gas in GST regime to subsume multiple taxes and thereby reduce the cost of power projects and the per-unit tariff.
  3. Infrastructure industry status to the T&D sector so that all related tax benefits can be availed.
  4. Even though generation is exempt from CENVAT, excise and VAT, taxes on power generation equipment and other inputs remain embedded in the cost of power.
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