“The Indian renewable energy industry, notably the solar sector, must applaud the Indian government’s efforts to promote green energy during the last decade, especially during the pandemic. The appropriations in the most recent budget strongly emphasize renewable energy, energy efficiency, electric mobility, data centers, building efficiency, grid-connected energy storage, and green bond assistance, which is a terrific development.
Following India’s broader global commitment to fighting climate change, the 2022 budget emphasizes allowing energy transition through provisions to boost local manufacturing of solar power equipment and batteries. The basic customs duty (BCD) of 25% has been imposed on imported solar cells and 40% has been imposed on solar modules by the Ministry of New and Renewable Energy (MNRE) recently which will be effective from 1st April, 2022. This will discourage Chinese imports of solar panels and solar cells to a great extent, giving further boost to the ‘Make in India’ mission of the Government of India.
It’s a wonderful move as the risks of climate change are the strongest negative externalities that affect India and other countries. As the Hon’ble Prime Minister said at the COP26 summit in Glasgow last November, “what is needed today is mindful and deliberate utilization, instead of mindless and destructive consumption.” The low carbon development strategy as enunciated in the ‘panchamrit’ that he announced is an important reflection of our government’s strong commitment towards sustainable development.
In addition, To facilitate domestic manufacturing for the ambitious goal of 280 GW of installed solar capacity by 2030, an additional allocation of ` 19,500 crore for Production Linked Incentive for manufacture of high efficiency modules, with priority to fully integrated manufacturing units from polysilicon to solar PV modules, will be made. This initiative is expected to produce 60 lakh new employment and an extra 30 lakh crore jobs over the following five years, which is recommendable.”
