Tata Power Managing Director Anil Sardana urges government to take policy measures to enable the power sector grow at 12 per cent every year.
He said the power sector must grow at 12 per cent every fiscal in order to support a GDP growth of 7-8 per cent.
For this purpose, Sardana suggested government to unleash several measures including increasing the financial incentives to the sector “given the sectoral caps that Indian regulations impose on domestic lenders.
He also advocated waiver of service tax for power projects and removal of import duty on equipment in order to reduce costs for power companies.
In the context of the unprecedented rise in imported coal prices and the shortage of domestic coal, he wants government to modify the policies pertaining to imported fuel-based mega projects.
Since power projects have long gestation periods, Sardana said that existing provision of a 10-year tax holiday could be extended to at least 15 years. Tata Power has an installed generation capacity of about 7,700 mw.
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