Power Minister says, Finance Minister has Reinstated Government’s Commitment of 24x7 Power to all homes

The Minister of State ( I/C) for Power, Coal & New & Renewable energy , Shri Piyush Goyal , applauding the Union Budget 2014-15 said that  “This is a transformative budget focusing on policy initiatives and a heavy emphasis has been laid on investment-led growth, which is reminiscent of the Vajpayee-era. The budget addresses immediate concerns of all sections of society – young, old, poor, women, farmers, SCs/STs, backward sections of the society, middle-class, entrepreneurs etc.” While Congratulating the Union Finance Minister Shri Arun Jaitley for  for delivering this growth-oriented, pragmatic budget , Shri Goyal said that “ This will truly be an inflection point for India. The FM has taken several strong steps for the revival, rejuvenation and resurgence of the Indian economy and presented a tangible and actionable roadmap to lift crores of people out of poverty, within 5 years. The thrust on skill development, manufacturing, education, clean & renewable energy, infrastructure and healthcare, are particularly heartening to see. Shri Goyal said that the Finance Minister has reinstated our government’s commitment of

24 x7 power to all homes.

 Welcoming the proposals relating to ministries of Power, Coal and New & Renewable Energy Shri Goyal said “  I am elated at the announcements to encourage new and renewable energy (solar, wind) and development of transmission & distribution. This will go a long way in ensuring 24x7 power to all. Welcome standardization of custom duty on coal – across grades and types – to end disputes immediately. This is the kind of practical solutions one expects from Arun ji! Our moves for improving coal quality by supplying crushed and washed coal, ensuring adequate coal supply for already commissioned & would-be commissioned power plants will unlock dead investments. Also welcome steps for incentivizing solar powered water pumps, and setting up of solar parks Rajasthan, Tamil Nadu and Ladakh; and moves for setting up solar plants on banks of canals. We will also set up Green Energy Corridors for evacuation of renewableenergy.”

Shri Goyal said that “I completely endorse the Union Budget 2014-15 as a visionary step towards fulfilling the aspirations of all Indians: “Sabka Saath Sabka Vikas”!”

Following are the excerpts of the Finance Minister’s Budget Speech relating to the Power , Coal and New Renewable Energy Sectors.

POWER SECTOR:

·         “DEENDAYAL UPADHYAYA GRAM JYOTI YOJANA” for feeder separation  launched to augment power supply to the rural areas and for strengthening sub-transmission and distribution systems. A sum of Rs. 500 crores has been set aside for this scheme.

·            Rs. 200 crore for power reforms to make Delhi a truly World Class City.

·            proposal to allocate an initial sum of Rs. 100 crore for preparatory work for a new scheme “Ultra-Modern Super Critical Coal Based Thermal Power Technology” to promote cleaner and more efficient thermal power.

COAL SECTOR:

Coal (Para 117)  

·         Comprehensive measures for enhancing domestic coal production are being put in place;

·         Stringent mechanism - quality control & environmental protection - supply crushed coal & setting up washeries. 

·         The existing impasse in coal sector will be resolved;

·         Adequate quantity of coal will be provided to power plants commissioned or would be commissioned by March 2015 to unlock dead investments.

·         Exercise to rationalize coal linkages to optimize transport of coal & reduce cost of power underway.

Coal Bed Methane (Para 119)   

·         Government’s intention to accelerate production and exploitation of Coal Bed Methane reserves.

·         Possibility of using modern technology to revive old or closed wells will be explored

Indirect Taxes (Rationalisation Para 221)

·         At present, coal attracts customs duties at different rates. It is proposed to rationalize the duty structure on all non-agglomerated coal at 2.5 percent basic customs duty and 2 percent CVD. Anthracite coal, bituminous coal, coking coal, steam coal and other coal will attract the same duty. This will eliminate assessment disputes, transaction costs associated with testing.

Clean energy Cess (Para 237)

·         Clean Energy Cess is presently levied on coal, peat and lignite for financing & promoting clean energy initiatives and funding research in clean energy.

·         Proposed to expand scope to include financing & promoting clean environment initiatives and research in area of clean environment.

·         To finance additional initiatives, Clean Energy Cess increased from Rs 50 /T to Rs 100 /T.

Mining (Para 122)

·         Intention to encourage investment in mining sector and promote sustainable mining practices to adequately meet the requirements of industry without sacrificing environmental concerns.

·         Current impasse in mining sector, including, iron ore mining, will be resolved expeditiously. Changes, if necessary, in the MMDR Act, 1957 would be introduced to facilitate this.

Revision of Royalty Rate (Para 123)

·         There have been requests from State Governments to revise rate of Royalty on minerals.  Royalty can be revised after a period of three years.

·         Last revision took place in August, 2009.

·         Another revision will be undertaken to ensure greater revenue to the State Governments.

Power (Para 116)

·         To promote cleaner and more efficient thermal power it has been proposed to allocate an initial sum of Rs 100 crore for preparatory work for a new scheme “Ultra-Modern Super Critical Coal Based Thermal Power Technology.”

·         (Para 200) Supply of power continues to be a major area of concern for the country. Therefore, instead of annual extensions, I propose to extend the 10 year tax holiday to the undertakings which begin generation, distribution and transmission of power by 31.03.2017. This stability in our policy will help the investors to plan their investments better.

MNRE :

·         Renewable energy is high priority of the Government.

·         Proposed to take up ultramodern Solar Power Projects in Rajasthan, Tamil Nadu and Laddkh in J&K.  A sum of Rs. 500 Crore allocated.

·         Scheme to promote one lakh solar power driven agriculture and water pumps set. A budget of Rs. 400 Crore allocated.

·         One MW solar power parks on the banks of irrigation canals. A sum of Rs. 100 crores allocated.

·         Implementation of Green Energy corridors for evacuation of power from renewable energy projects.

·         Clean energy cess on coal increased from Rs. 50/tonne to Rs. 100/tonne to be utilized for clean energy activities.    

(Release ID :106400)