This Article is From Jul 13, 2014

Capital Outlay for 7 Power PSUs at Rs 51,425.84-Crore in FY15

New Delhi:

Seven power PSUs, including the country's largest electricity generator NTPC, have drawn up total capital expenditure plans of Rs 51,425.84 crore during the current financial year 2014-15.

The total capex or capital expenditure of the seven PSUs for FY2014-15 is just 3.4 per cent higher than that of Rs 49,731.90 crore in 2013-14.

NTPC's capex for the year will be Rs 22,400 crore followed by central transmission utility Power Grid Corporation's Rs 20,000 crore, an official document said.

In 2013-14, NTPC, which has diversified into hydro power, power trading, coal mining etc, had planned Rs 20,200 crore as capex. Power Grid's capex is same as last fiscals.

Hydro power generator NHPC will have a capital expenditure of Rs 3,224.26 crore this year against Rs 3,058.12 crore in 2013-14.

Damodar Valley Corporation (DVC) and North Eastern Electric Power Corporation (NEEPCO) have reduced their capex for the period to Rs 2,764.99 crore from Rs 3,515.97 crore and Rs 1,087.98 crore from Rs 1,661.77 crore in 2013-14, respectively.

While the expenditure on expansion in THDC (Tehri Hydro Development Corporation) has increased nearly 50 per cent at Rs 856.68 crore from Rs 331.96 crore, the one in Satluj Jal Vidyut Nigam has increased to Rs 1,091.93 crore from Rs 964.08 crore, last fiscal. These expenses will be incurred by the companies towards meeting their expansion plans during the period.

Finance Minister Arun Jaitley, in the Budget last week, announced a slew of measures for energising the country's power sector including extension of the 10-year tax holiday benefit by another three years (March 2017) to the companies.

Power companies can claim tax exemption for up to 10 years within the first 15 years of a project's operations. Last year, the government extended the scheme until March 31, 2014.

Association of Power Producers' (APP) has said that the extension of 10 year tax holiday will provide a significant boost in investor interest in the power sector and also benefit the end consumer.