Direct Tax Incentives to Power Sector in India: A Case Study

2017 ◽  
Vol 63 (1) ◽  
pp. 104-123
Author(s):  
Sanjiv Shankar
Keyword(s):  
Market Failure ◽  
Thermal Power ◽  
Tax Incentives ◽  
Electricity Sector ◽  
Fiscal Year ◽  
Test Case ◽  
Power Sector ◽  
Firm Level ◽  
The Impact ◽  
Direct Tax

The article examines in detail, as a test case, the impact of direct tax incentives on the power sector in India. The Indian power sector is regulated and has been the greatest beneficiary of the various tax incentives. Direct taxes foregone to the power companies alone are estimated to be ₹700,000 million during the fiscal year 2006–2007 to 2014–2015. The power companies in India have enjoyed profit-linked tax holidays (Section 80 IA), accelerated depreciation (Section 32), easy accessibility of external commercial borrowings and a low withholding tax of 5 per cent on overseas borrowing. The study does a ‘three-way examination’ of the impact of the tax incentives by examining: (i) macroeconomic indicators, (ii) firm level data and (iii) micro-indicators. The findings are that (i) there is no evidence of any real benefits accruing to the economy either in the form of increased foreign direct investment (FDI) flows to the sector, gross fixed capital formation (GFCF) in the sector or commensurate growth in electricity sector vis-à-vis other sectors of the economy or in the economy as a whole due to the several decades of direct tax incentives to the power sector in India; (ii) clearly, the loss of revenue from the tax incentives is real and substantial and (iii) the financial ratios of the three power companies (National Thermal Power Corporation [NTPC], Tata Power and Reliance Energy) indicate that they are capable of raising resources on their own and the theory of market failure may not apply to them.

scholarly journals The Role of Electric Power Sector in China’s Global Economic Expansion

2019 ◽  
Vol 12 (6) ◽  
pp. 188-202
Author(s):  
R. A. Epikhina
Keyword(s):  
Developing Countries ◽  
Best Management Practices ◽  
Nuclear Power ◽  
Management Practices ◽  
Power Transmission ◽  
Developed Countries ◽  
Electricity Sector ◽  
Power Sector ◽  
Economic Expansion ◽  
The Impact

The article discusses some of the major characteristics and trends of China’s economic expansion in the global power industry. It argues that by investing in electricity infrastructure China creates prerequisites for long-term dominance in one of the key sectors in a number of countries and regions. Deals in the power sector are mainly implemented by state-owned companies and facilitated by state-owned financial institutions. In terms of structure and geography, foreign investment in the electricity sector is dominated by traditional types of generation in developing countries. However, China has been diversifying into renewables, nuclear power and grids and entering markets of the developed countries. The creation of a special international organization (GEIDCO) should facilitate its expansion in the electricity sector abroad. It is worth noting that foreign economic expansion plays an important role in supporting China’s slowing economy amid the transformation of its growth model. It allows China to adopt advanced technologies and best management practices in developed countries while forming alternative value chains, as well as promoting its own equipment and standards (especially in ultra-high voltage power transmission) in the developing countries. However, given the impact of the trade war, increasing securitization of the Chinese foreign investments, Chinese authorities’ control over capital outflows and the rising environmental concerns in developing countries, further expansion of the Chinese capital in the global electricity industry is likely to be held back, while competition from non-Chinese electricity companies is likely to grow.

scholarly journals Solar Roof Top Generation, Marginal Cost, Financial Impacts on the Utility of Sri Lanka

2019 ◽  
Vol 12 (4) ◽  
pp. 128
Author(s):  
J. G. L. S. Jayawardena ◽  
U. Anura Kumara ◽  
M. A. K. Sriyalatha
Keyword(s):  
Sri Lanka ◽  
Thermal Power ◽  
Electricity Sector ◽  
Financial Impact ◽  
The Government ◽  
Tariff Structure ◽  
Financial Impacts ◽  
Utility Scale ◽  
The Impact ◽  
Solar Generation

The intensity of solar radiation in Sri Lanka is 1,247-2,106 kWh/m2 per annum (SEA, 2014). There are existing solar generation capacities of 177 MW by using solar roof top systems and 51 MW of the utility scale solar plants in the country as at 28th March 2019. The Government of Sri Lanka(GOSL) introduce Building Integrated Photo Voltaic program since 2009 basically to bank the surplus of electricity units with the Utility. In 2016 GOSL introduced cash payback method for surplus energy generated by Roof Top Solar installations. Some of the stakeholders of the electricity sector argue that the Roof Top Solar generation program has negative financial impact on the financial position of the utility. The impact of the Solar Roof Top program on revenue of the Utility and the customer tariff system has been studied. Results show that Feed in Tariff of the Solar Roof Top is comparatively low with most of the thermal power generation. According to the findings of the study it can be concluded that the financial impact of the program is beneficial to the economy as a whole, but marginally negative to the short terms cash flow of the utility. Anyhow it is seen that such utility centric negativity can be ameliorated though due tariff structure. The government has to consider about the electricity policy of customer tariff in order to provide the concessions only for the needy people.

Assessing the impact of dividend policy on the sustainability of distressed firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mina Sami ◽  
Wael Abdallah
Keyword(s):  
Stock Returns ◽  
Dividend Policy ◽  
Dynamic Panel Data ◽  
Fiscal Year ◽  
Policy Management ◽  
Wealth Status ◽  
Firm Level ◽  
Content Type ◽  
Distressed Firms ◽  
The Impact

Purpose The paper uses firm level data for the top listed firms in New York exchange stock over the period 2000–2017. The analysis is mainly based on 237 firms that already experienced losses at the end of the fiscal year. The study aims to use the properties of the dynamic panel data, specifically the methodology proposed by Arenllo and Bond (1991), to fulfill the objectives of the paper. Design/methodology/approach This paper focuses on the dividend policy management of the firms when they experience a loss at the end of the fiscal year. The objective is to examine how such a policy management affects the sustainability of the firm (measured by the future sales and total factor productivity[TFP]) and the wealth of its shareholders (measured by the Stock Returns). Findings The results show that the distressed firms that distribute dividends at the end of the loss period are able to maintain sustainability and to reach more favorable wealth situation of their shareholders relative to the firms who abstain to pay; the dividend policy during periods of loss is still able to send positive signals about the firm in the market; and the dividend policy can be considered as a predictive indicator for a sustainable firm whose shareholders can also predict their capital gains. Originality/value Agreed upon the literature that the firms during the period of crisis are likely to change their dividend policy, this study offers robust evidence that the dividend policy of distressed firms affects their sustainability (measured by sales and TFP) and the wealth status of their shareholders (measured by the Stock Returns).

Simhadri Super Thermal Power Project (A)

2006 ◽  
pp. 1-9
Author(s):  
Ajay Pandey ◽  
Sebastian Morris
Keyword(s):  
Private Sector ◽  
Andhra Pradesh ◽  
Thermal Power ◽  
Project Planning ◽  
Electricity Sector ◽  
Power Sector ◽  
Set Up ◽  
Power Project

The Indian electricity sector was opened to the private sector under the IPP policy. The NTPC, India's largest and perhaps most efficient generator had to respond to the changing scenario. It set out to set up the Simhadri project in Andhra Pradesh, going beyond to original mandate. The IPP policy, its perversities, the background of the power sector, the problems there in and the response of NTPC are discussed. Case (B) discusses the issues related to Project Planning and Implementation.

Assessing the Impacts of Inter-Regional Power Transmissions on Energy Structure in China’s Power Sector

2014 ◽  
Vol 962-965 ◽  
pp. 1757-1761
Author(s):  
Jie Zhao ◽  
Can Wang ◽  
Min Hua Ye
Keyword(s):  
Renewable Energy ◽  
Energy Use ◽  
Optimal Allocation ◽  
Power Transmission ◽  
Thermal Power ◽  
Energy Structure ◽  
Regional Power ◽  
Power Sector ◽  
Regional Energy ◽  
The Impact

Ultra-high voltage (UHV) inter-regional power transmissions not only can upgrade the optimal allocation ability of electricity energy in a wider range, but also can link the renewable energy power plant center and electricity load center. We use a bottom-up optimization model based on six regional power grids to simulate the impact of inter-regional transmission on energy structure in china’s power sector. The result shows that it maybe not has the positive effect as we had expected, the main consequence of the inter-regional power transmission is the thermal power generation migration among different regions, which has no significant effect on promoting renewable energy in the absence of other incentive policies. As a new form of inter-regional energy deployment, UHV inter-regional power transmission will change our future regional energy use, as well as air emissions, greenhouse gas emissions and other development path, so we also put SO2, NOx and CO2 emission control into consideration.

Implications of Carbon Tax on Generation Expansion Plan & GHG Emission: A Case Study on Indian Power Sector

2005 ◽  
Vol 3 (1) ◽  
Author(s):  
Gaurav Nanda ◽  
Sangeeta Yamgar ◽  
S.C. Srivastava ◽  
S.N. Singh ◽  
Praveen Gupta ◽  
...  
Keyword(s):  
Carbon Tax ◽  
Thermal Power ◽  
Resource Planning ◽  
Power Sector ◽  
Generation Expansion ◽  
Integrated Resource Planning ◽  
Expansion Plan ◽  
Indian Power Sector ◽  
Carbon Dioxide Co2 ◽  
The Impact

Concentration of greenhouse gases in the atmosphere is steadily increasing leading to global warming. India is expected to be one of the major contributors to Green House Gases (GHGs) due to increased share of thermal power generation, which is a major contributor to carbon dioxide (CO2) emission. One way to limit these emissions is by implementing some economic instruments like carbon tax or energy tax. This study has been carried out to analyze the impact of carbon tax on the complete Indian power sector network. An Integrated Resource Planning and Analysis (IRPA) model and CPLEX software has been used to carry out the present study.

scholarly journals The Impact of Cross-Cultural Differences on Project Performance: A Study of Power Sector Development Operation and Electricity Sector Development Project in Uganda

2020 ◽  
Vol 11 (1(V)) ◽  
pp. 44-63
Author(s):  
Fredrick Gubala ◽  
Olawumi Dele Awolusi
Keyword(s):  
Project Management ◽  
Project Performance ◽  
Development Project ◽  
Electricity Sector ◽  
Strong Positive Correlation ◽  
Power Sector ◽  
Project Staff ◽  
Management Processes ◽  
Project Management Processes ◽  
The Impact

The purpose of this research was to establish a relationship between people’s cultural attributes, multinational project management processes, project technologies and project performance in Uganda’s energy sector concerning the practice during the implementation of the Power Sector Development Operation (PSDO) and Electricity Sector Development Project (ESDP) as case studies. The study employed a comprehensive survey design which mostly quantitative thus requiring the collection and analysis of data. It tangled both analytical and descriptive research designs. The research targeted 136 project beneficiaries or ‘project clients’ spread across the various target areas. The simple random sampling method was employed. Data compiled was reviewed to fill any gaps for incompleteness and inconsistency. This was to make ensure the exactness of the material provided acquired from the participants, through the continued reviews and comments provided by the Supervisor. Data was re-organized and software called the Statistical package. For social scientists (SPSS) was used to enter the data and analyze it, the results indicated a strong positive correlation people’s cultural attributes and project performance, multinational project management processes and project performance and between project technologies and project performance(r = .535** p ? 0.01, r = .758** p ? 0.01 and r = .656** p ? 0.01) correspondingly. It was concluded that people’s culture attributes, multinational project management and project technologies are pre-requisites for effective project performance in the Power Sector Development Operation Project and Electricity Sector Development project in Uganda and that Project technologies are a better predictor of project performance. The suggestion or recommendation for project managers to ensure that they progress implementation of their projects, peoples culture attributes, multinational project management and project technologies need to be enhanced through training of project staff and effective involvement of the communities.

scholarly journals Water Demand Scenarios for Electricity Generation at the Global and Regional Levels

Water ◽  
2020 ◽  
Vol 12 (9) ◽  
pp. 2482
Author(s):  
Julia Terrapon-Pfaff ◽  
Willington Ortiz ◽  
Peter Viebahn ◽  
Ellen Kynast ◽  
Martina Flörke
Keyword(s):  
Water Demand ◽  
Electricity Generation ◽  
Cooling System ◽  
Energy Transition ◽  
Electricity Sector ◽  
Power Sector ◽  
Global Energy ◽  
Energy Scenario ◽  
Global Demand ◽  
The Impact

Electricity generation requires water. With the global demand for electricity expected to increase significantly in the coming decades, the water demand in the power sector is also expected to rise. However, due to the ongoing global energy transition, the future structure of the power supply—and hence future water demand for power generation—is subject to high levels of uncertainty, because the volume of water required for electricity generation varies significantly depending on both the generation technology and the cooling system. This study shows the implications of ambitious decarbonization strategies for the direct water demand for electricity generation. To this end, water demand scenarios for the electricity sector are developed based on selected global energy scenario studies to systematically analyze the impact up to 2040. The results show that different decarbonization strategies for the electricity sector can lead to a huge variation in water needs. Reducing greenhouse gas emissions (GHG) does not necessarily lead to a reduction in water demand. These findings emphasize the need to take into account not only GHG emission reductions, but also such aspects as water requirements of future energy systems, both at the regional and global levels, in order to achieve a sustainable energy transition.

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