Tax exemption to bring down prices

Our response to the Union Budget 2018-19 is slightly indifferent. The government is focusing on providing impetus to EV infrastructure and this will help develop the segment over the long term. Initiative to boost liquidity for the NBFC sector and further capitalization of the bank will certainly help and it is in-line with our demand for bringing in more liquidity into the system, which will help revive the capital investment. Another important takeaway for us is the tax exemption for domestic manufacturers of solar cells, modules and EVs. We expect this to bring down prices of domestic solar modules and batteries. Also, there was emphasis to bring structural reforms in power sector to remove barriers, cross-subsidy and undesirable duties is positive, which shall help direct sourcing of renewable power by large corporate customers, but the fine print is still awaited. However, the overall reduction on the corporate tax rate would have been more welcomed.