Power industry seeks service tax exemption to all projects

By admin June 17, 2013 9:01 am IST

“We were hopeful of some favourable announcements in the budget for countering increasing imports of electrical equipment”
– Ashok Kaushik, Managing Director, Ensto India
ENSTO specialises in developing and marketing electrical systems and supplies for dependable, efficient distribution of electrical power. The company caters to the electrical power sector as well as high-end standard and customised enclosures. Ashok Kaushik talks about the disruptions in electricity supply, policy making and ENSTO.
Power industry at presentAt present, the power utilisation is only 77 per cent and the most disturbing fact is that the 31 per cent loss in transmission and distribution of electricity. India has always suffered from scarcity of electricity and the problem is getting worse as the population is increasing. Pilferage, stealing and other transmission losses have only added to the deficit and ended in hours of unscheduled disruptions in electricity supply.

Seeking service tax exemption electrical equipment makers like ENSTO — especially domestic electrical equipment makers — were not very happy with the 2014 Union Budget. They were hopeful of some favourable announcements in the budget for countering increasing imports of electrical equipment. They were also seeking service tax exemption to all projects covered in power generation, transmission and distribution in-line with exemption provided to other infrastructure development projects.
YOY growthENSTO is growing with a rate of 70 per cent, year over year. Last year, it also launched its industrial solution products in India. ENSTO also has started exporting its products to Bhutan and Sri Lanka.Fighting constraintsENSTO, whose products are patented, has more than 50 years of experience in building electricity networks. It believes in sustainability and care for environment. The company is having product range to cover smart grid concept. Its connectors have very low contact resistance which prevent energy loss. Its clamps and other product are specially designed for long service life to avoid load on environment to reproduce them.
ENSTO is working with its customers and creating awareness about the right technologies, standards and installation practices through ENSTO Pro and joint working. The company offers accessories and solutions for medium- and low-voltage networks. Showcasing innovationsENSTO has carried out pilot projects and showcased its solutions with many utilities. One such project was carried out in Delhi to demonstrate how A B cable system to be erected. As a result, the fault level in that area has been reduced a lot. ENSTO also carried out such project to have efficient distribution network in highly congested area with narrow lanes. As a result, revenue collection from that area has been increased, and it is very safe and clean.
India’s target to be 5th largest manufacturing countryIndia needs to focus strongly on infrastructure and cutting red tape if it wants to achieve its targets to be the 5th largest manufacturing country and increase the share of manufacturing in GDP to 25 per cent from 15 per cennufacturing sector.