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POWER
BUDGET HIGHLIGHTS & IMPACT
n Excise exemption on equipment procured for brownfield expansion of
ultra-mega power project
Impact: Positive. Currently, brownfield expansion of existing mega-power
projects attract customs duty of 2.5% (no CVD) in case of imported equipments
and full excise duty in case of domestic equipments. The FM has proposed
to exempt domestic suppliers from excise duty in case of brownfield expansions.
This is expected to bring down the cost of equipment supply from domestic
players like BHEL and L&T. However, as of now, none of the ongoing UMPPs
have announced brownfield expansion.
n Increase in MAT marginally
Impact: MAT has been raised from 18% to 18.5% which will be partly offset
by reduction in surcharge from 7.5% to 5%. The overall impact will be marginal.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
POWER
BUDGET HIGHLIGHTS & IMPACT
n Excise exemption on equipment procured for brownfield expansion of
ultra-mega power project
Impact: Positive. Currently, brownfield expansion of existing mega-power
projects attract customs duty of 2.5% (no CVD) in case of imported equipments
and full excise duty in case of domestic equipments. The FM has proposed
to exempt domestic suppliers from excise duty in case of brownfield expansions.
This is expected to bring down the cost of equipment supply from domestic
players like BHEL and L&T. However, as of now, none of the ongoing UMPPs
have announced brownfield expansion.
n Increase in MAT marginally
Impact: MAT has been raised from 18% to 18.5% which will be partly offset
by reduction in surcharge from 7.5% to 5%. The overall impact will be marginal.
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