FM allows high depreciation for power

Finance minister Pranab Mukherjee on Friday proposed an additional depreciation of 20% in the initial year for new assets acquired by power generation companies, but stopped short of offering a blanket extension of the incentive to the industry in general. HT reports.

Finance minister Pranab Mukherjee on Friday proposed an additional depreciation of 20% in the initial year for new assets acquired by power generation companies, but stopped short of offering a blanket extension of the incentive to the industry in general.

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The Association of Power Producers (APP) — a grouping of about 22 private entities — said the budget proposals announced on Friday would go a long way in incentivising the power sector and benefitting the end consumer.

Industry bodies had recommended the finance minister for depreciation and additional depreciation allowance for many other sectors such as hotels.