Rapid growth in renewable energy is due to private investment: FM Sitharaman
17 Feb 2023 14:36:40
Hyderabad, Feb 17: Dispelling any concerns on whether private sector investments are happening in the country or not, Union Finance Minister Nirmala Sitharaman said that rapid growth in certain sectors like renewable energy is happening because of private sector investments.
Sitharaman, who was in Hyderabad with her team for post-budget interaction with stakeholders as well as DD Dialogue #AmritkaalBudget Conclave.
Responding to a question at the DD Dialogue on whether the States will match the consistent capital expenditure increase that the Union Government has been doing and whether the increase in capital expenditure has resulted in the crowding of private sector investments, she said, ”The pace at which the renewable energy sector is moving, it cannot happen without private investment. This investment is basically aimed at increasing the existing capacities and also attracting new industries into the sunrise sector.” Regarding States, she said, “States are showing a lot of interest and asking for more than what has been given by the Finance Commission.” She went on to explain, “eighty percent of all those grants are unconditional, but what is notable is that States are picking those grants too which are conditional, and performing well. In the first year (when grants were extended with conditions), we were doubtful. But, many States have joined and are performing.” On the issue of whether the government will directly go for overseas borrowing, the Union Finance Secretary, TV Somanathan, at the stakeholders’ meeting, ruled out the idea. “The answer is, no. There are some benefits, but there are also some negative effects which include exposure to risks. In a volatile world, even a central bank’s money can be stopped by a foreign country for political reasons. This is not a very simple question of yields alone,” he said adding, “We are already open to foreign portfolio investment in rupee-denominated securities..”
The overall Budget, she said, was focused to keep the growth momentum and sustain measures to promote growth despite the challenges faced due to fuel prices, food, and fertilizers. Earlier at the stakeholders' interaction she asserted that the Centre is firm on formalizing the economy and ruled out giving exemptions on tax on prize monies and asked the industry not to ask for TDS concessions.
“If you start asking for TDS concessions, this country will never get formalized. (A number of) transactions happen, but we don’t know whether the money goes with the TDS. We should know who is the giver and who is the taker,” she stressed. Answering a query on deferred payments to MSMEs, Finance Secretary said that there was a significant Budgetary announcement that proposed changes to the Income Tax Act to ensure payments to MSMEs. “An amendment is being brought to the Income Tax Act by which if the payment is not made to an MSME then that amount can’t be deducted by the paying organization until the payment is made on time,” he said adding, “If they don’t pay on time, this expense will be disallowed until such time,” he said.