Corporate tax cut could lead to annual savings of Rs 2,500 crore for the power distribution segment: ICRA

KOLKATA: Centre’s recent announcement of lowering corporate tax rate is a positive development for the power sector, as it would allow the power generators with cost plus power purchase agreements (PPAs) to pass on the lower tax benefit to the power distribution utilities (discoms).

As per ICRA’s estimates, the extent of benefit that would accrue to discoms from the power generation and transmission segments, mainly from central and state utilities, would be about Rs 2500 crore annually.