ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Cotton Speculative Price Rise

10,000 MW of capacity. Besides inviting global tenders for power projects and seeking bilateral assistance from some countries, the government expected the private sector to invest in new capacity. But the private sector, it seems, has other avenues of more profitable investment, especially in the consumer durables industry which has been offered attractive incentives. The prime minister is fond of referring to a 'package', but in reality there is no explicit package of incentives to make the power sector attractive for private investment. The government reduced the import duty on power equipment to 25 per cent ad valorem and one may expect a reduction in the rate of excise duty too. Presumably the private sector finds power tariffs unremunerative. But private sector power companies like Tata Electric are doing well. Tata Electric even expanded its capacity by importing a 500 MW thermal set for its Trombay project.

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