- In an important note they have recommended to raise depreciation rates for plant and machinery from 15 per cent to 30 per cent, at least for a period of two years to encourage more capital investment.
- Higher depreciation rate of 50 per cent in case of retrofitting technologies, which are more energy efficient and environment friendly in order to encourage companies to go green.
Article Source: http://www.rediff.com/business/report/budget-2012-wishlist-cii-increase-depreciation-on-plant-and-machinery-to-30-per-cent/20120229.htm
Publication Date: 29 Feb 2012
Worldwide surveys show that a nation's GDP is significantly affected by corrosion losses. This problem is not only the buzzword for people in Process Industries, but also perennial in public utilities such as metro water supply. We can see contamination of public water through corrosion problems. Our country is loosing crores and crores of money in replacing the old equipments due to corrosion problems. If higher depreciation rate is allowed, industries will be encouraged to replace the equipments quite frequently with no focus on material conservation efforts. Industries must be encouraged to follow corrosion control practices for saving this huge corrosion cost. Corrosion Prevention has been introduced in the US to encourage the company for getting credit FOR CORROSION PREVENTION AND MITIGATION MEASURES FOR Energy-related property.
We need to work in the direction of conserving our precious material resources.