Finance Minister announces measures for power sector in Budget 2019-20

The finance minister has proposed a package for the power sector and announced plans to launch tariff and structural reforms for the sector in the Union Budget 2019-20. Accordingly, the central government will work with the state governments to remove barriers like cross-subsidy surcharges, undesirable duties on open access sales or captive generation for industrial and other bulk power consumers. The government will also build on the One Nation, One Grid model to ensure power availability to states at affordable rates. In addition, the government is examining the performance of the Ujwal Discom Assurance Yojana (UDAY) and it will be improved further. In addition, the government will launch a scheme to invite global companies through competitive bidding to set up mega-manufacturing plants in advanced technology areas such as solar photovoltaic (PV) cells, lithium storage batteries and solar electric charging infrastructure. The goods and services tax on EVs has alsobeen reduced from 12 per cent to 5 per cent to promote e-mobility. Customs duty on all forms of uranium ores and concentrates for the generation of nuclear power has been removed. Customs duty has also been removed for all goods required for the setting up of a nuclear power plant under project imports.

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