07 July,2009 09:37 AM IST | | PTI
The electrical industry is generally disappointed by the Union Budget 2009-10. Considering the government's promise of Electricity For All by 2012, the only specific mention in the entire Union Budget for the power sector includes the allocation of Rs 7,000 crore for RGGVY and Rs 2,080 crore for the RAPDRP programme, the Indian Electrical and Electronics Manufacturers Association (IEEMA), said in a statement here.
IEEMA welcomes the continuation of reforms, abolition of the Fringe Benefit Tax and proposed introduction of GST on April 1, 2010.
IEEMA feels that although the Government has announced a Rs one lakh-crore fund availability over the next 18 months through the Indian Infrastructure Financial Corporation Limited (IIFCL) for refinancing 60 per cent of the bank loans for public/private partnership projects (PPP), how much of it will really go towards the power sector is not clear.
It is also to be noted that for addition of one MW of power, an investment of around Rs five crore is needed and a similar amount is needed for evacuating and distributing the power to the consumers, it said.
u00a0Looking at the planned power sector expansion which could need investments of lakhs of crores of rupees, it is not clear where from and how these funds will be made available, IEEMA said.
