New Delhi: Solar energy producers in the country want the government to delay the imposition of a basic custom duty (BCD) on solar panels during the next budget period. They fear that this could undermine the government’s intent to have the 175GW rebuilt by 2022, which requires a flow of Rs 1.75 lakh crore.
According to industry estimates, Rs 1.75 lakh crore is needed to generate 35GW of renewable energy in the country. About 50 GW of clean energy is still in operation, while India has already installed more than 90GW of renewable energy, including 37GW of solar and 38GW of wind power.
India aims to achieve 175GW of renewable energy by 2022, including 100GW of solar and 60GW of wind power.
Finance Minister Nirmala Sitharaman will present the General Budget on February 1.
In early June last year, Energy Minister R K Singh made it clear that the government’s intention to introduce a basic custom duty on solar products was repeated.
Solar Power Developers Association (SPDA) Director-General Shekhar Dutt said: “There is a need to postpone BCD in solar modules until domestic producers grow. of India for its Atmanirbhar initiative. “
However, he said doing enough R&D on efficient solar modules and building a low-cost home, compatible with imported modules, requires considerable time.
“Incorporating BCD into this intervention period will have a negative impact. Solar manufacturers will need to introduce modules to meet contract obligations at a much higher cost if there is no required domestic energy,” he said.
SPDA is also concerned about the sudden rise in prices for metal and alloys, making the (solar) project uncontrollable.
Dutt said prices in the global market have risen sharply due to the trade war between China and Australia. The Indian government has always defended the interest of Indian steelmakers in importing steel through price limits and other international treaties.
However, he said due to rising global prices, Indian steel producers have taken advantage of and exploited this situation through cartelization, which can be seen in the shocking increase in the prices of HRC domestic and Galvalume steel (used in MMS Properties).
He suggested that an appropriate mechanism be set up such as export restrictions so that firms would not engage in such conduct.
SPDA also wants a GST (tax on goods and services) levy on Solar PV Projects.
Government aims to facilitate tax reform in the Renewable Energy sector; however, under the current tax regime, solar power projects, the split considers 70 percent of total considerations to be ‘supply chain value’ attracting 5 percent of GST and the remaining 30 percent as’ the value of services that attract 18 percent of. GST.
The effective tax rate thus comes out at about 8.9 percent. A rating of 70:30 only indicates a negative sector rating as the share of Solar Power project assets is approximately 90 percent.
Dutt said: “It is fair to say that any taxes, jobs such as the GST imposed by the government actually lead to an increase in electricity costs. This in turn causes a potential increase in production or cost of living. And, therefore, is counterproductive to national growth. , we request a tax assessment and a 5% tax assessment on the board. “
Last year, the government announced a plan to invest in discounted discs worth Rs 90,000 crore, which was extended to Rs 1.2 lakh crore later. These funds would be issued in two equal dollars.
Dutt suggested that the second phase of the program be released as soon as possible. He also made a machine case so that the expectations would be given to the government directly.
He called for speeding up the passage of the Electricity (Amendment) 2020 Act. Discom’s proposed changes to the proposed amendments for 2020 are still pending.
The chairman of the Indian Wind Turbine Manufacturers Association (IWTMA) Tulsi Tanti said the body had called for a speedy recovery of 80 percent of wind turbines and solar projects especially MSMEs (small and medium enterprises).
He also called on the government to install and redistribute energy through renewable energy devices as a business specified under section 35AD (of the Income Tax Act) similar to building infrastructure.
He also called for the removal of Balsa’s import restrictions, which are for the construction of wind turbines.
IWTMA also urged it to stop discarding imported cheap goods and to encourage DTA buyers (local taxpayers) to purchase their inputs at local SEZ units (special economic zones) (rather than importing the same), saying it was important to reduce active property taxes in the approval of assets from SEZ to DTA from between 7.5 to 1 percent to only 2 percent.
Source:- Economic Times