Public sector undertaking and the country’s largest power generator NTPC will not acquire stressed power generation assets. However, the Navratna will be operating assets owned by others as a business proposition, according to the Minister of State (Independent Charge) for Coal, Power, Renewable Energy and Mines, Piyush Goyal.
Speaking to reporters at a session on the Goods and Services Tax organised by the FICCI Ladies Organisation (FLO), Goyal said, “NTPC is not taking over any stressed assets. If the banks take over any stressed assets and they run a due process, everybody will be free to participate in that, including the PSU companies.”
In response to a query on NTPC being an operator for the stressed assets taken over by banks, Goyal said, “That’s a support they provide to anybody in the public or private sector. If any body wants to approach NTPC and is willing to pay NTPC, it’s a service that they provide and anybody can avail it. It’s a revenue model for NTPC.”
In response to a query on the tax payable on batteries and cables used in solar power generation systems, Goyal said, “It cannot be possible that a certain product will be taxed differently at sale if it is being targeted for a certain end use. Each product comes under a certain tax slab. Once the product has been utilised in a solar system, the developer can claim an input tax credit on the total tax payable.”
BusinessLine had reported on July 30 that due to the inverted duty structure, developers will first pay the higher tax and then claim a tax refund against the five per cent slab while filing the returns. The credit transmission will be possible only if the renewable energy project developer submits invoices to the government regarding procurement and tax paid.