Financial Daily from THE HINDU group of publications
Wednesday, Feb 15, 2006


Group Sites

Industry & Economy - Budget

`Give infrastructure status for power generation biz'

Our Bureau

Mumbai , Feb. 14

Electrical and electronics manufacturers want the Government to categorise power generation and distribution business under "infrastructure facility" in the forthcoming Budget, in order to extend the benefits available only to owners of the projects to developers and operators, too.

At present, benefits under Section 80 IA are available to undertakings engaged in generation, transmission or distribution of power, but in a restricted manner, as turnkey contractors, who supply and operate the equipment, are not allowed such benefits.

The country's electrical and electronics industry has a gross annual turnover of over Rs 50,000 crore, with exports contributing Rs 5,000 crore in the last fiscal. The manufacturers are concerned over the recent free trade agreements with neighbouring countries like Singapore, Bangladesh and Thailand. "FTAs are essential in a globalised environment, but the recent ones with Thailand, Singapore and Bangladesh have thrown up new challenges for the domestic electrical industry. These countries reportedly do not have the manufacturing capability and could act as conduits for re-exports from China, Korea, Japan and Malaysia. The domestic industry apprehends dumping of finished goods, as the FTA partner countries have comparatively lower tariffs," a representative of the Indian Electrical and Electronics Manufacturers Association said.

More Stories on : Budget | Electrical Goods | Electronics | Power | Infrastructure

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Weather concerns worry shrimp exporters — Arrivals likely to be delayed by a month

INTUC defends lower EPF rate
Chidambaram holds pre-Budget talks with Congress party
`Give infrastructure status for power generation biz'
2006 could see significant yuan revaluation
Punjab annual Plan at Rs 4,000 cr
CII unveils roadmap for industrial growth in North Bengal
Good monsoon, core sectors aid 7.5 per cent growth in AP
Eco management programme
Tourists may be able to use rupee in Mauritius
`Indian cos must explore opportunities in new areas'
Haldia Development Authority assets valued at Rs 605 cr
No major changes in conditions for ADB loans: Kerala Minister
Oil cos may get more freedom in pricing
Power sector reforms figure in tenth mid-term appraisal meeting
FAPCCI call to phase out CST
Montek calls for a rethink on coal pricing
Online B-school to launch India-specific courses
New management programme to let students get exposure to industry
France biz school promo
Kerala Chamber assails bid by postal dept to restrict courier cos
Uranium Corpn's assurance on mining practices
EU for time-bound, `balanced' outcome of WTO talks
Scrap drop-box system in banks: Consumer body
Max NY Life opposes EET, fringe benefit tax
Exports post 21 per cent growth in January
Ayurveda meet for French team at Kochi
Core manufacturing sectors — Domestic cos stealing a global march in efficiency benchmarks

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line