The Department of Revenue claims that “fiscal concessions, besides distorting the tax structure, act as hidden subsidies and are unfair to other sectors that do not enjoy similar treatment.”
The mega power policy currently gives waiver from customs duty on equipment imports and a 10-year tax holiday. While suggesting changes in the mega power policy to make CPPs and MPPs eligible for tax concessions, Power Minister Sushil Kumar Shinde asserted that they would play a crucial role in increasing the country’s generation capacity.
— Amit Mukherjee
