Budget 2012 to benefit all power companies: Prabhudas Lilladher
Budget has proposed increase in allocation to power projects of Rs 100 billion tax free bonds and various double-digit increase in allocations in rural power.
MUMBAI: All the power companies are set to benefit from the proposals put up by Finance Minister Pranab Mukherjee in his budget speech for FY13, says Prabhudas Lilladher.
The budget has proposed increase in allocation to power projects of Rs 100 billion tax free bonds and various double-digit increase in allocations in rural power. The government is allowing external currency borrowings for power projects. Withholding tax on interest received on ECB’s by non-residents has been reduced to 5% from 20%.
Budget at ET: Budget 2012 | Union Budget | Budget 2012 Highlights: Blog | Railway Budget | Budget News |Economic Survey of India
Import duty on coal has been reduced to nil from 5%. Thermal power plants have been exempted from custom duty to for two years.
Adani Power is the brokerage’s top pick in the sector.
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