According to reports, the restoration of the tax-saving ‘accelerated depreciation’ benefit for the wind industry comes at a time when profit-making enterprises are being coaxed to put up solar projects to save on taxes. (The ‘AD benefit’ allows a company to write down 80 per cent of the cost of the machinery as depreciation, thus lowering profits on which tax is calculated.) In States such as Tamil Nadu a number of “AD customers” have cropped up for the solar industry. Only on Wednesday, three textile manufacturers near Karur in Tamil Nadu announced that they had put up a 10 MW solar plant. Thangavel Balachandran of one of the companies – Aravind-A Traders – told Business Line that the project would not be viable without the ‘accelerated depreciation’ benefit. But now that that AD has been given to those who put up wind power projects too, it moves a part –though
The nominations for CSP Today/PV Insider’s INDIASOL 2014 Awards are officially open. The CSP and PV communities can now nominate their desired solar companies in India to win an INDIASOL 2014 Award.
Balanced approach needed for power sector -- NIPEF Tuesday July 22, 2014 NOIDA The over dependence on private sector for bringing in power sector reforms in generation, transmission and distribution did not auger well for the country and there was a need for a balanced approach. The Northern India Power Engineers Federation (NIPEF ) in its executive meeting held at Noida requested Narendra Modi Government to introduce a new energy policy to meet the growing challenges and negate over emphasis on privatization. Padamjit Singh Chief Patron AIPEF said that power tariffs would remain low only when the central and state government utilities together accounted for 70% of the total power generation vis-à-vis private companies. The private sector generating companies are not following any rules and are operating thermal plants as per their will. Their only aim to maximize the tax free
According to reports, after facing delays, trade disputes and industry tiffs, theJawaharlal Nehru National Solar Mission (JNNSM) appears to be back on track. The ministry of new and renewable energy (MNRE) has issued guidelines for setting up 1,500 Mw of solar power plants, the largest tender issued till now. It has also roped in NTPC Vidyut Vyapar Nigam (NVVN) to expedite the phase and meet the mission’s targets. NVVN would also bundle the solar power generated with cheaper conventional power and sell at an average rate. “The selection of grid-connected solar photovoltaic (PV) projects of 1,500 Mw total capacity shall be carried out by NVVN through a transparent, tariff (rate)-based reverse bidding process. NVVN will purchase the power from the successful developers at their bid tariff and sell bundled power to distribution companies/utilities/other bulk consumers,” say the guidelines issued by MNRE. NVVN is the trading arm of the nation’s largest thermal power producer, NTPC. It
The debate over the construction of hydroelectric power projects (HEPs) continues even as work on 24 HEPs remains stalled under the orders of the Supreme Court. The Chopra Committee report — a report submitted by the Expert Body formed under the directions of the Supreme Court to study the contribution of HEPs in the State in exacerbating the June 2013 deluge — has recommended that 23 of the 24 projects must be cancelled. However, another report submitted by the Central Water Commission (CWC) and Central Electricity Authority (CEA), argues that the work on the 24 projects must continue. In a letter written to the Home Ministry, Dr Shekhar Pathak and Dr Hemant Dhyani who were members of the Expert Body allege the CWC and CEA officials of ‘putting natural resources at stake to serve vested interests.’ While the CWC and the CEA were mandated to present their views and dissents in the Chopra Committee
According to reports, it is champagne time for the wind industry and thanks to the Finance Minister. The restoration of the long-awaited ‘accelerated depreciation’ is just a formality away. The government will move an amendment to the Finance Bill to bring back the tax-saving benefit and the measure will come into force as soon as the Bill is passed by the Parliament, i.e., before July 31. Profit-making companies will now have an option of putting up wind power turbines and write-down 80 per cent of the cost of the machines — about Rs. 6.5 crore a MW – as depreciation for the purpose of calculating taxable profits. Wind industry experts say this move will have an impact of creating 1,000 MW of wind power capacity in a year; in the current financial year (2014-15), about half of it could be expected to come. 1,000 MW of capacity would mean investments of
Tata Power DDL (TPDDL) today said it has not fully paid electricity tax dues to North Delhi Municipal Corporation for two months as the latter has not paid electricity bills totaling over Rs 62 crore.
Claiming that the Corporation owes Rs 62.53 crore in electricity consumption bills, the power distribution company said any further delay in payment of dues may result in blackout of streetlights in North and Northwest Delhi."NDMC (North Delhi Municipal Corporation) owes Rs 62.53 crore towards electricity consumption bills for streetlights, high mast lights to TPDDL. These payments/dues are pending for the last two years," TPDDL said in a statement. The Corporation has not been paying the relevant tariff on electricity consumption as per the notified rates declared by the Delhi Electricity Regulatory Commission DERC, it claimed. "Owing to non-payments by NDMC, TPDDL was constrained to partly adjust the electricity tax
The Uttar Pradesh government will provide free electricity connections to 1.72 lakh below poverty line (BPL) families in the state, officials said on Saturday.
Chief Secretary Alok Ranjan has issued an order for getting the desired logistics. He said the construction of 33/11 substations in 166 out of out of 201 tehsils will be completed by October later this year. The rest may be completed by March 2015. While reviewing the performance of the energy department and additional sources here on Friday, Ranjan said under the plan to provide 24-hour power supply, 122 transmission substations would be built. He has already ordered capacity building of 103 transmission substations on priority basis. The chief secretary said pending works of Anpara-D thermal power project, Harduaganj and Panki extension, Obra-C, Ghatampur, and Meja thermal power projects should be completed in a time-bound manner. Senior officials have
Tata Power Delhi Distribution (TPWR), which lights up every third home in the country's capital, wants to surrender purchase contracts for 340 megawatts of electricity because of higher fuel costs passed on by producers.
The company is seeking the regulator's approval to end about 20 per cent of its long-term agreements with coal and natural gas-fired plants, Chief Executive Officer Praveer Sinhasaid. Suppliers include NTPC, the nation's biggest power producer. The surrendered power will need to be allocated to other buyers, Sinha said.
"We are doing everything we can to run an efficient business, and have succeeded to a large extent
A day after power tariff was hiked in the national capital, Union Finance Minister Arun Jaitley today announced subsidy of Rs 0.80 to Rs 1.20 per unit for small consumers earmarking Rs 260 crore for power subsidy.
"Increase in power tariffs are necessitated due to increase in input costs. However, the poor and marginalised should not suffer I therefore propose power subsidy of Rs 260 crore for the domestic consumers to provide relief to the targeted consumers on account of increase in the tariff. The modalities will be worked out by the Government of NCT of Delhi," said Jaitley while presenting Delhi budget in Parliament. Rs 0.80-1.20 per unit subsidy will be provided to small electricity consumers, he said. Jaitley also mentioned in his speech that he had already proposed Rs 200 crore for power reforms in the national capital in the Union Budget