Roomie Dara Vakil, Director, Solar Industries India Limited“The Budget of Rs 2.74 lakh crore for defence, out of which capital outlay is Rs 86,500 crore. This is about 10 percent higher than the previous year. It appears that while the capital outlay is similar to last year, the increase in the revenue Budget by about 16 percent which would indeed increase the spend on ammunition and consumables, it would be good for the domestic manufacturing companies in this segment. Considering that the estimated lapse of 10 percent in the capital spend in the previous year, the Budget on capital expenditure is satisfactory provided it is utilised with minimum lapse in Budget." "Since Government’s emphasis on defence preparedness has been the Central theme, we would have been happy if some incentives by way of tax exemption or deferment on loan payments would have been announced for domestic industry."Tulsi Tanti, CMD, Suzlon Group
This Budget is expected to lead an inclusive growth with a clear focus to lift the rural economy and create the right infrastructure.
With a special mention about the drive towards 100 percent electrification, the renewable industry was hopeful that there would be an announcement to support the achievement of the Government’s RE target 175 GW, and long-term policy framework to achieve our INDCs and commitment made at COP-21 to reduce carbon emission to 30-35 percent by 2030.
On manufacturing front, It is indeed encouraging that India is now ranked sixth globally. The Budget promises a very robust forex reserve, with resilient domestic market, further capitalisation of PSU banks, and launch of trade infrastructure for export scheme (TIES), can truly position the ‘Make in India’ apart from establishing the country as a global hub for engineering goods.
Sumant Sinha, Chairman and CEO, ReNew Power
The Union Budget of 2017-2018 is extremely balanced containing a lot of positives. While strong on reforms, fiscal numbers and macroeconomic parameters, the Budget has aimed looking to boost the rural and agriculture sectors. The tone of the recently announced Budget remains largely neutral in terms of maintaining a sustainable fiscal consolidation roadmap.The fiscal deficit of 3.2 percent is in-line with expectations which will be looked at as a positive by the bond and debt markets. The reduction of corporate tax rate for companies below 500 million rupee turnover will encourage higher compliance at the lower level of the corporate pyramid where percentage of tax leakages is usually much higher.Also, the abolishment of the FIPB (Foreign Investment Promotion Board) is is a great move as it will clearly speed up the process which will have a positive effect on the intent of Foreign Investors to invest in our country. Last but not least, the decision to bring Affordable Housing under Infrastructure will undoubtedly provide a timely boost to the sector along with its allied sectors like steel and cement. On the renewable energy front no mention of GBI for the wind sector has been a disappointment. However, roll out of the second phase of solar development of another 20,000 MW will go a long way in cementing India’s position in the global solar industry. With the Railways also going the solar route, it signifies a significant change towards the use of green and clean energy for one of the largest modes of transport in the country.The increase of 35 percent of expenditure allocation to rural electrification schemes shows extremely progressive thinking when keeping the long term target of meeting 100 percent electrification by 2018 in mind. All in all, it is a Budget that should revive demand, lead to greater industrial activity and thereby increase overall demand for energy as well.
Jasmeet Khurana, Associate Director – Consulting, Bridge to India
Things that were not announced in the Budget speech will have a larger impact on the solar sector than things that were.
Discontinuation of the tax holiday benefit is expected to have some negative impact on the sector but the cost reduction benefits through last year should help counter this negative impact.
This showcases the inherent strength of the sector and illustrates the fact the industry can grow despite government interventions being reduced or removed. Having said that, asking the industry to also absorb a possible rate increase due to Goods and Services Tax (GST) this year can negatively impact the sentiment. We hope that the Ministry of Finance accepts the Ministry of Power’s recommendation on zero-rate tax status for the sector under GST.
Manish Aggarwal, Partner and Head of Energy and Natural Resources, KPMG
Budget further lends execution focus to the commitments made by the Government towards having a more sustainable growth from an environment standpoint.
The focus on renewable energy gained another fillip as an additional 20,000 MW was announced under the National Solar Mission.
Solarising Railways will give fillip to roof top space going forward.
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