The power sector today received a minor boost in the Union Budget 2006 with a Rs 597 crore corpus for non-conventional energy resources, tax holidays to the ultra mega power projects and coal blocks being de-reserved for generators.
The finance minister also announced an investment of Rs 1,300 crore for developing the power sector in Jammu & Kashmir.
In his Budget speech, the finance minister said the government will complete the award of the five ultra mega power projects of 4000 Mw before December 31 this year.
The finance minister said that 82 power projects currently under construction are expected to add 33,000 Mw of capacity in the public sector and 6,500 Mw of capacity in the private sector. Of these, about 15,000 Mw will come on stream by March 31, 2007.
The industry, however, seemed a bit disappointed with the FM
