Power
§ 5 UMPPs
Will add 20 GW of more efficient power plants, will
improve the power availability situation of the nation. The background work
done for the earlier attempted UMPP bids will speed up the process.
But the concern is the availability of such huge quantum of finance, going by
the unfavourable time for the banks and other financing agencies.
§ Plug & Play
model for quick clearances
Quick clearances, definitely a positive move, to avoid time over run of projects.
§ Additional depreciation @ 20% is allowed on new plant and machinery installed by a manufacturing unit or a unit engaged in generation and distribution of power .
It would be having a positive impact on the sector, although the quantum of benefit would be moderate.
RE
§INR75 crore for
electric cars production under Faster Adoption and manufacturing of Electric
Vehicle (FAME) policy.
The impact would be positive, but low as it would only be benefiting a small portion of
everyday transport, usually helpful for small distance commute.
§ Target 2022: 100 GW
in solar; 60 GW in wind; 10 GW in biomass and 5 GW in small hydro.
The goal seems
unrealistic. But if could be achieved the carbon footprint of an equivalent of
85 GW of coal based thermal power generation can be offset. Power availability
of the nation would see a growth.
But then, is there enough power evacuation
infra available to address this huge quantum of capacity installation?
§ Reduction in Basic
Customs Duty to reduce the cost of raw materials- Active Energy Controller
(AEC) for use in the manufacture of Renewable Power System (RPS) Inverters to
5%, subject to certification by MNRE.
The impact of this cost reduction would be positive on the sector, but the impact would be low. As this component forms a very minute part of the project cost.
And again the
implementation of the same is subjected to the approval of MNRE.
Rural Electrification
Electrification, by 2020, of the remaining 20,000
villages in the country, including by off-grid solar power generation.
Will be positive for the
sector. But the goal seems to be difficult. Even if the numbers of electrified
villages reach the set mark of 20,000, the impact would not be that significant
if they happen to provide electricity connections to just 10% of the total
household of those respective villages as has been defined by Rural
Electrification Policy.
