Tata Steel and Tata Power have welcomed the budget initiatives towards achieving inclusive growth and a sustainable economy, while admitting that they are disappointed at the lack of some sector-specific moves.
H. M. Nerurkar, managing director, Tata Steel, said the company cheered the thrust given to the infrastructure industry through an investment allowance of 15 per cent and various steps for mobilising funds for its growth.
The extension of full exemption from export duty for galvanised steel sheets would help the steel industry and enable Tata Steel to be more competitive in the international market.
“We are also looking forward to the announcement of a public private partnership (PPP) policy framework for increasing coal production which will help reduce imports and achieve raw material security in the longer-run. However, we are disappointed that the steel industry demands to reduce import duty on iron ore and other raw materials for steel were not met,” Mr. Nerurkar said.
Anil Sardanha, managing director, Tata Power, said the company welcomed the Finance Minister’s announcement to equalise the customs and countervailing duty (CVD) for steam and bituminous coal used in thermal power generation at 2 per cent each as this would provide clarity to claims by the Customs Department.
The government’s decision to support the renewable and non-conventional energy sector was also welcome.
Investment in a transmission network in J&K is laudable and there is need for similar incentives across the country.
There is also need to make distributed generation — a ready solution for rural electrification — lucrative for independent power players to encourage more investment and ensure growth, he said.