New Delhi: The merger of Orient Green Power Co. Ltd’s (OGPL) wind power business with IL&FS Wind Energy may come unstuck because of a new provision that mandates payment of long-term capital gains tax on share sales where securities transaction tax (STT) has not been paid. “There are huge tax implications due to changes announced in the budget pertaining to the securities transaction tax. IL&FS Wind has an operating capacity of 775 MW in FY17. Spokespersons for OGPL, IL&FS and Arpwood Capital declined comment. There is growing consolidation in the Indian wind energy space even as the sector is grappling with issues such as squatters encroaching on sites that have a good potential for wind energy projects, inordinate delays in signing of power purchase agreements (PPAs) and untimely payments.

Source: Mint May 07, 2017 22:30 UTC