The Union Budget proposals presented by the Finance Minister on 5 July ’19, were appreciated by the All India Solar Industries Association (AISIA) for making the farmers Urja producers and the positive intentions of the Government towards to Power sector in.
The announcement of ‘One Nation, One Grid’ scheme, for affordable power to the states will aid the Renewable Energy sector in integration with the power sector. The full package of benefits will soon be announced, which is being keenly awaited by the RE sector.
While announcement in the Budget, of including all firms up to Rs 400 crores turnover in the 25% corporate rate level will help some of the RE sector firms in making them more competitive, the major issues of the sector in lowering the Anti-Dumping Duty (ADD) on components and equipment, as well as the leakage from non-ADD levied countries, and debilitating issues on GST, are awaiting solutions from the Government.
If RE and its major component the Solar industries are to play its effective role in fulfilling the target of 100 GW of solar power by 2022, we need continuity in demand to run production for which SOS basis.
Government support is also needed for sustainable capacity installation and investments. Today the lack of support through subsidies on power, capital, interest, depreciation and incentives on exports are awaited to attract new investment in the sector.