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Expectation for Solar Sector from India Union Budget 2017-2018

Expectation for Solar Sector from India Union Budget 2017-2018


In context of reduce the use of fossil fuel and having a very high potential of Renewable Energy sources. The Center had announced the JNNSM in the year 2010 for developing 20 GW capacity solar gird connected and 2 GW off grid solar power plant. Further Govt. Of India has taken steps to increased the target of Solar Mission Capacity five times to 100 GW. The Center excepts to achieve the target of 100 GW of solar generation capacity at the end of 2017. Prime Minister Narendra Modi has set an ambitious target of generation power of 175 GW by 2022 from renewable sources. The points may included in the impending budget for the FY 2017-18:

1) Accelerated Depreciation: Reduction of accelerated depreciation would be a negative impact on solar industry and it shall be hard to achieve a target of 40 GW Solar Rooftop as undertaken by Indian Govt. A few years ago, when accelerated depreciation was removed from wind energy sector that affects the current growth of this sector. Later on Govt. Of India re-instate the same. If full Accelerated Depreciation is retained it would help the Central and State Govt. to achieve their goals and further this would also keep the sector live w.r.t current growth track.

2) GST: Tax exemptions on renewable energy products including solar power equipment and feed-in-tariff should be considered under zero percent duty category. This would ensure there is no adverse impact on the procurements made for generation of renewable energy due to increase in tax costs. Further please there should have a clarity on upcoming GST regime so that MNRE and CERC should come out with a mechanism that would put the potential bidders for solar power project in bind.

3) Domestic Manufacturing of Solar Modules should boost up under Make in India Mission.

4) Low Funding scheme have to be available in the market. All Indian Banks should come with more attractive Green bonds for module manufacturers and power generators.

5) RPO Regulations: With an example of Maharashtra Regulations on RPO, Govt of India should present the same example to each state through making mandatory of this Obligations. This would boost up the REC Regulations and to the extent it shall reduce the demand and supply gap in REC market.

6) Open Access Regulations: Govt. Of India should have a thrust on open access regulations.

7) Single window clearance for land, transmission related permissions, and should have a robust mechanism.

Thanks and Regards

Satadip Ghatak

Sustainoble Advisory Services LLP

47 New Ballygunge Road, 3B, Kolkata – 700 039, West Bengal, India.

Email satadip.ghatak@sustainoble.com| Mobile +91 9474 698447| Skype satadip.ghatak

Website www.sustainoble.com

Anand Gupta Editor - EQ Int'l Media Network


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