Budget 2017: Power Ministry wants tax sops booster for ‘ongoing’ hydel projects

With an aim to generate more electricity from clean energy sources, chiefly the hydropower sector, Ministry of Power has sought concessions for under-construction hydel projects in the upcoming Union Budget for 2017-18. This includes the clubbing of these projects under the ‘renewable energy’ category, alongside solar and wind projects, which entitles these projects to sharply lower tax rates. A proposal for deemed export status has also been sought for hydro projects, in line with the proposed status for solar power units and a demand for a zero-rated supply status for the hydro sector, which is likely to involve a tax shortfall of Rs 880 crore over five years, according to The Indian Express report.