Power sector says Budget 2013 is a mixed bag
The Budget today evoked a mixed reaction in the power sector with large players slamming the import duty hikes, but those in the renewable energy space welcomed the proposal to incentivise wind energy projects. While some players criticised the upward revision of the import duty, from 1 to 4 per cent, on steam coal imports, saying it will adversely impact the industry, others said the move will bring clarity on Customs department’s operations. “The announcement to equalise the custom and CVD for steam and bituminous coal used in thermal power generation at 2 per cent is welcome as this provides clarity to otherwise claims that got raised by Customs department,” Tata Power BSE 2.70 % Managing Director Anil Sardana said. However, Adani Group Chairman Gautam Adani said this move is “amusing” given the fact that the country is facing coal shortage. “The move is a little amusing as the country has huge deficit in coal and the government is trying to minimise cost by augmenting coal supply through various steps for domestic production as well as opting for price pooling of domestic and imported coal,” Adani said.