Union Budget 2021 and the Power Sector

Rajiv Goyal

1. Increase of diesel and petrol prices on krishi cess & Old vehicle scrap policy must increase EV penetration

2. Rs. 3.0 Lac Crore funding to Discom should promote metering , data centre , Software industry on one hand and Clear of dues of generators on other hand.

3. Solar sector may hit in ST due to increased custom duty.

4. 100% electrification of railways should bring more demand of power and electrical equipment

5. Choice to consumer seems to be a slogan as of now, but show government intent to push it in 3-5 yrs for implementing.

6. Incentives to affordable housing , PMAY and rental based housing should increase a Good Demand ( one who pays for usage) . Generally theft is low in structured colonies / apartments

7. More digitisation means higher generation of data and new data centres to come up soon. These are generally consume huge power.

8. Setting up lab for health care in each district and upgradation of 15000 schools should also benefit power sector indirectly with required cables, wires , etc and more power supply .

9. Feeder separation is taken on large scale in budget , it’s linked to solarisation of agricultural feeders in later stage . Budget provisions therefore have set up progressive plan for which results may be available after 3-4 years Overall this budget appears to be good for power sector