Impact of GST on Power Sector

Electricity is the heart of growth of economy, it is critical for better development and sustained growth of the country. Constitutionally the proposed GST bill allows the levy of GST on all goods, other than those specified. Electricity is not amongst those goods, which are specifically excluded. Lets discuss today impact of GST on Power Sector.

Indian power sector is divided in 2 Major types:

  1. Renewable Power РSolar, Wind, SHP, BG, BP, U&I
  2. Non – Renewable Power – Coal, Gas and Oil

Lets look at the statistics of power industry:

SectorMW% of Total
State Sector103,96732.53%
Central Sector80,25725.11%
Private Sector1,35,38242.36%
Total319,606

 

FuelMW% of Total
Total Thermal218,33068.3%
Coal192,16360.1%
Gas25,3297.9%
Oil8380.3%
Hydro44,47813.9%
Nuclear6,7802.1%
RES (Renewable Energy Sources)50,01815.6%
Total3,19,606

Continue reading “Impact of GST on Power Sector”