On the whole, the Budget is very positive. It is one of the most comprehensive budget presentations that I have ever witnessed, covering the entire socio-economic breadth of the country. Point by point, Finance Minister Arun Jaitley recalled the promises made in the BJP’s manifesto across all sectors and talked about how the Government wishes to deliver on them. It covered everything—rural development, skill sets, infrastructure, sports, airports, waterways, navigation, power generation, etc.

The Budget brought good cheer for the power sector on two counts – one, power units that get commissioned by March 31, 2015 will be assured of continuous coal supply, and two, the extension of the tax holiday for power projects till March 31, 2017, a necessary step given the number of power projects stranded for want of fuel or environment clearances. The extension will also renew the viability of the proposed projects. Another highlight for the power sector is the Government’s intention to introduce new technology in the wind and solar energy spaces. However, the Budget did acknowledge that the thermal power sector will continue to be the mainstay and that the Government intends to support it by resolving the coal impasse.

While the Government has extended the tax exemption benefits to power generation plants, it would have been ideal if it were to go further and work out a financial bailout plan for beleaguered power, steel and mining projects.

Furthermore, the Government could have proposed to set up a special financing arm for industrial and infrastructure projects with investments exceeding ₹500 crore. The stricken businesses could have been made eligible for long-term loans and equity financing.

The basic custom duty increase from 5 to 7.5 per cent on flat steel products is welcome news to the local industry as it will offer some protection form cheap imports from countries such as China and South Korea.

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