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Keeping ‘Green growth’ as one of the 7 priorities of Budget 2023, shows the commitment of the government towards providing continuous thrust to the Green Energy sector in coming years.
Favourable announcements:-
- Providing large outlay of Rs. 35,000 Crs for Energy Transition and Zero Emission target by 2070,
- Increasing Green Hydrogen production to 5MMT/annum by 2030,
- Viability Gap Funding for battery solutions of certain capacity and fiscal benefits for pump energy transition to renewables
- Green Credit Programme to be notified under the Environment (Protection) Act to incentivize environmentally sustainable and responsive actions towards green growth.
However, there were some misses that the government should have announced to ensure that renewable energy generation capacity ramps up to 40-50 GW /year to meet the 2030 target of 500 GW by reducing the capital costs, financing costs and adding revenue streams like domestic environmental attributes
Missed announcement or Misses:-
- Inclusion in the ‘project import scheme’ facilitating import at concessional rate of 5%
- Reduction of deferral removal of custom duties on import of cells & modules for next 12-18 months till India has 30 GW pf cell and module capacity
- Industry’s long pending demand reduction of GST rates to pre-2021 levels for Wind and Solar equipment
- Allocation of funds to institutions like IREDA etc to reduce the cost of financing for renewable energy projects and including private sector for the green bonds scheme.
- Extension of date for manufacturing companies for availing lower tax rate of 15% which is currently only valid till 31st March 2024.
