Not a 'green' budget
By- Satheesh Kumar, CEO, Enzen Global Solutions, an upper quartile energy and environment consulting company
This year, there is not much in the budget for the energy and environment sector, except for increased allocation in R-APDRP. There were just two major announcements for the energy sector- increased allocation to the power reform scheme which aims to bring down the Aggregate Technical and Commercial (AT&C) losses of state electricity boards from 35 % to less than 15%, and a customs duty cut on wind energy equipment. Besides this, the power sector has not much to cheer about.
Moreover, the increase in the minimum alternate tax (MAT) rate from 10 to 15% is a dampener.
The finance minister could have considered tax reduction/ exemption on clean technologies and an increase in taxes on polluting and low energy efficient products. The energy sector was also expecting reduction in tax on CFL lamps, energy efficient computers, and Green building materials, to encourage energy saving and sustainable development.
The budget should have reduced tax on low polluting, fuel efficient cars and hike road tax on low fuel efficient vehicles.
The pro-poor budget should have considered meeting the basic needs for poor like providing clean cooking fuels and safe drinking water. Tax exemption on household water purification technologies should have been considered.
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