• The government is targetting a capacity addition of 88.5 GW during 2012-17 and 86.4 GW during 2017-22.
• The National Tariff Policy (2006) ensured adequate return on investment to companies engaged in power generation, transmission and distribution and to companies producing assured electricity to end users at affordable and competitive rates.
• Launch of the Ultra Mega Power Project (UMPP) scheme through tariff-based competitive bidding.
• As of March 31, 2013, total coal reserves stood at 298.94 Billion Tonnes, out of which 123.19 Billion Tonnes were proven reserves.
• Proven natural gas reserves measure up to 1,354.76 Billion cubic meters.

STATISTICS

PROVISIONS UNDER BUDGET 2O14-15:

• Extension of sunset date under section 80 IA (4) (iv) of the Income Tax Act for the power sector (generation, distribution and transmission) to 31.03.2017 for claiming deduction of 100% of profits and gains for 10 consecutive assessment years.
• Adequate quantity of coal will be provided to power plants which are already commissioned or are to be commissioned by March 2015.
• Allocation of INR 1 Billion for preparatory work for a new scheme creating ultra-modern super critical coal-based thermal power technology aimed at providing cleaner and efficient thermal power.
• Allocation of INR 5 Billion to Deen Dayal Upadhyaya Gram Jyoti Yojana, for launching feeder separation to augment power supply to the rural areas and for strengthening sub-transmission and distribution systems.
• Full exemption from central excise duty is being provided to liquefied propane mixture, liquefied propane, liquefied butane and liquefied petroleum gases for supply to non-domestic exempted category customers by the IOCL, HPCL or BPCL retrospectively from 08.02.2013.
• The duty structure on non-agglomerated coal of various types is being rationalized at 2.5% Basic Customs Duty (BCD) and 2% Counterveiling Duty (CVD). The BCD on anthracite coal and other coal is being reduced from 5% to 2.5%.
• The CVD on anthracite coal, coking coal and other coal is being reduced from 6% to 2%.
• Exemption from BCD is being granted on re-gassified LNG for supply to Pakistan.
• Imports of liquefied propane mixture, liquefied propane, liquefied butane and liquefied petroleum gases for supply to non-domestic exempted category customers by the IOCL, HPCL or BPCL retrospectively from 08.02.2013.

TAX INCENTIVES: R&D INCENTIVES

• Industries and infrastructure sectors including the power/energy efficiency sectors with in-house R&D centers get a write-off in revenues and capital expenditure incurred on R&D.
• A weighted tax deduction is given under section 35 (2AA) of the Income Tax Act to industry/private sponsored research programmes.
• A weighted deduction of 200% is granted to assesses for any sums paid to a national laboratory, university or institute of technology, or specified people with a specific direction and the said sum will be used for scientific research within a programme approved by the prescribed authority.

STATE INCENTIVES:

• India offers additional incentives for industrial projects in certain states.
• Incentives are in areas such as rebates in land cost, the relaxation of stamp duty exemption on the sale and lease of land, power tariff incentives, a concessional rate of interest on loans, investment subsidies, tax incentives, backward area subsidies and special incentive packages for mega projects.

AREA BASED INCENTIVES:

• Incentives are available for the setting up of projects in special areas like the North-east, Jammu & Kashmir, Himachal Pradesh & Uttarakhand.

INVESTMENT OPPORTUNITIES