Thermax says govt needs to implement policies with iron hands; liquidity issues haunting sector

IndiaBusinessBloomberg UTV.

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“The Land acquisition act needs to be enacted and government should fast-track the clearance procedure,” Thermax said in an interview with Bloomberg UTV.

Slow decision making, lack of initiatives, higher cost of borrowing and delay in project clearance have compounded the fall in capital goods. “The Land acquisition act needs to be enacted and government should fast-track the clearance procedure,” Thermax said in an interview with Bloomberg UTV.

Fall in India’s industrial production (IIP), sagging investor and customer confidence, and issues like coal linkages, land acquisitions intensified the problems for the sector. “The private sector continuously requires government support,” it added.

The company further spoke about the commercial losses and import duty for power equipment manufacturing. Below are the key takeaways from the interview:

•    Govt should look at faster clearances
•    Land acquisition act needs to be enacted
•    Private industry to continuously require govt support
•    Need to implement govt acts with an iron hand
•    SEBs unable to control commercial losses
•    Need uniform commercial rates for electricity
•    Electricity generation should increase by 10-12%
•    Budget should address import duty for power equipment manufacturing
•    Govt needs to address liquidity issues for sector