Date:02/03/2008 URL: http://www.thehindubusinessline.com/2008/03/02/stories/2008030251350700.htm

Back Powering ahead

The creation of a national fund for power transmission and distribution reforms, as well as the stated policy of speeding up bidding for another 5 ultra mega power projects (UMPP) also augur well for the power sector. The appointment of a coal regulator will also be of importance given the issues involved in arranging fuel supply for supporting the ambitious capacity addition programme in the power sector. The reduction of customs duty on project imports from 7.5 per cent to 5 per cent would also be beneficial for the large projects in the infrastructure sector. On a sectoral basis, the clear beneficiaries are auto, pharma, hospitality, agriculture-based companies and infrastructure sectors. The worst affected would be the PSU banks. For most other sectors, it seems to be largely neutral.

P.K. Choudhury, Vice Chairman and Group CEO, ICRA Ltd