India's Green Energy Ambitions in Focus for Union Budget
Key Ideas
  • Industry executives in India are optimistic about the upcoming Union Budget potentially providing policy support and tax benefits to accelerate the green energy transition.
  • Key expectations include the reduction of GST rates on renewable energy components like solar modules and electrolysers to lower project costs and make renewable power and hydrogen more affordable for consumers nationwide.
  • There is also a call for support for newer sectors like green hydrogen, offshore wind, and energy storage through viability gap funding and subsidies to enhance competitiveness and foster market development.
  • Experts highlight the need for policy measures to promote indigenous manufacturing of equipment for clean energy sectors, aiming to reduce dependence on imported machinery to bolster self-reliance.
In anticipation of the upcoming Union Budget in India, the green energy sector is hopeful for significant policy reforms and tax incentives to further drive the renewable energy transition. Industry leaders are particularly focused on potential revisions to GST rates, with calls for lowering rates on essential components like solar modules and electrolysers to reduce project costs and enhance affordability for consumers. Executives emphasize the importance of supporting newer sectors such as green hydrogen, offshore wind, and energy storage through measures like viability gap funding and subsidies to stimulate growth and competitiveness. There are also appeals for removing certain mandates, like the ALMM approved solar modules requirement, to facilitate smoother operations, especially in the commercial and industrial segments. Additionally, the industry seeks to bolster domestic manufacturing capabilities by promoting policies that encourage the production of key equipment locally. This shift aims to decrease the current heavy reliance on imported machinery, promoting self-sufficiency and boosting the indigenous clean energy manufacturing sector. The expectations also extend to supporting the green hydrogen mission and battery storage development, highlighting the crucial role of subsidies and funding for promoting market viability and adoption. Overall, the industry's positive outlook for the Union Budget reflects the collective optimism towards leveraging policy interventions to advance India's green energy ambitions.
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