The renewable energy sector could soon have debt products — focussed specifically on the sector — to be developed by public sector units Rural Electrification Corporation (REC) and Power Finance Corporation (PFC).
Power Minister Piyush Goyal said on Monday: “I have asked REC and PFC to develop debt products with a focus on the renewable energy sector.” He did not elaborate.
According to estimates, to meet its goal of 100,000 MW of solar energy generation capacity by 2022, which includes 60,000 MW of land-based projects, more than $40 billion of debt is required.
On another issue relating to the solar power sector, Goyal said that his ministries are not pitching to keep renewable energy equipment out of the purview of the proposed GST, but have sought the same level of taxes on imports.
“Ideally, we should put GST rate on imports so that it becomes a level playing field and domestic manufacturing is not at a disadvantage. Today, there is an inverted duty structure — domestic manufacturers are paying more taxes than imports,” he said.
Goyal added: “Some manufacturing people did talk to me about keep renewable energy equipment out of GST. I don’t think we should keep it out. My approach is different. We have to create a level playing field so the GST rate should be levied on imports of renewable energy equipment.”
Meanwhile, talking about his new portfolio of Mines, Goyal said he will now seek cooperation from the States to ease land acquisition and increase the pace of mining lease auctions.
“The States will have to support and cooperate in getting land. The Centre alone cannot do it,” he observed.
He added that he will study the quality of mines available for auctions to ensure that the best quality mines are offered.