JSW Steel may consider setting up special purpose vehicles (SPVs) for expansion to take advantage of the government’s corporation tax incentive. The company would consider this alternative model for any future expansion beyond 13 million tonnes at Vijayanagar and 1 million tonnes each at Salem and 10 million tonnes at Dolvi, said JSW Steel’s Joint MD. As and when we take up these projects, we will explore setting up separate SPVs because of the great incentive which is available in the form of a sharper reduction in corporate tax rate where the effective rate is 17%, he said.
With NMDC set to restart mining at Donimalai in Bellari district of Karnataka, iron oresupply is bound to increase and bring down prices particularly when many sponge ironand pellet manufacturers in the State have shut operations due to rise in cost and weakdemand. The largest steel producer in the State JSW Steel will be the major beneficiaryas it was sourcing iron ore from another State in order to bridge the supply shortfall.
Seshagiri Rao, Joint Managing Director, JSW Steel, reported media, the recentamendment to the Mining Act will pave way for NMDC to restart production atDonimalai leading to a drop in price by ₹600 a tonne. The current steel demand is weakbut is expected to pick up with the government announcing various measures andseasonally the second half of the fiscal is always much better than the first due to several festivals.
Due to policy uncertainty and tariff glitches, the country’s installed capacity inrenewable energy (RE) could increase by just 40 GW to 104 GW by fiscal 2022 from64.4 GW in fiscal 2019, ending about 42% short of Government’s target of 175 GW.
According to Crisil Research, the sector has witnessed a material waning of developerinterest last fiscal. A sizeable (26%) of 64 GW of projects that were auctioned by theCentre and states received no or lukewarm bids and another 31% faced delays inallocation after being tendered.
The RE sector requires investments of ₹2.6 lakh crore over the next five years as perCRISIL Research’s outlook. The resolution of the above-mentioned policy risks wouldprovide a fillip to the sector, posing an upside to the current estimate of 104 GWinstalled capacity by fiscal 2022.
Minister of State (Independent Charge) for Power and New and Renewable Energy, MrRK Singh, said that the legacy dues that power distribution companies (Discoms) oweto generation companies (Gencos) will be cleared in less than a year from now. In aninterview with media he reported that with the Letter of Credit (LC) system in place, thegenerators are now confident of getting paid for their power supplies.
That still leavesthe legacy dues before the LC system kicked in, which is a challenge.He also added that we are working out a timeframe of 8-9 months for it, so that theDiscoms can make staggered payments over that period. If they don’t, will put in placesystems to make sure that the payment is made. It can be a number of mechanismssuch as regulating power supply.
We are drafting the legislation and it will be out within7-10 days. The legacy dues are estimated to be close to ₹45,000 crore. They will haveto be paid, else regulation will start.On New Electricity Act, he said the Act of the country must be a legislation whichprovides for the rights of all stakeholders. Keeping this mind, Singh and his team in thePower Ministry are working on a new Act.
The Indian rupee appreciated by 9 paise to 70.78 against the US dollar in early tradeon Friday (October 4, 2019) ahead of the Reserve Bank of India’s (RBI) monetarypolicy decision. The RBI’s Monetary Policy Committee (MPC) is slated to announce itsfourth bi-monthly policy decision for this fiscal later in the day.