Incredible opportunity for renewable energy
e welcome this budget as it is positive and growth oriented with a clear view to uplift the rural economy.
On renewable energy specifically, as part of rural development, the government continues on its plan to providing 100 per cent electrification by 1st May, 2018. This poses incredible opportunity for the renewable sector and to boost rural economy. At the same time, coal cess has been doubled to Rs.400/tonne, thereby, creating the resources to achieve 30-35 per cent carbon emissions reduction target outlined by India at COP21 this year and also 175GW renewables target by 2022.
The excise duty reduction from 12.5 per cent to 6 per cent on materials used for parts and sub-parts of rotor blades for wind generators is a positive move. However, the imposition of service tax on freight charges incurred for transport of goods by sea will adversely impact the competitiveness of wind turbine manufacturing in India .
We hope the government will reconsider the Accelerated Depreciation (AD) limit which has been reduced from 80 per cent to 40 per cent effective FY18. We wish to reiterate that the Accelerated Depreciation limit of 80 per cent should continue till 2022, aligned to the government target of 175 GW renewables by 2022 and to boost manufacturing under the Make in India vision.
— Tulsi Tanti, Chairman and Managing Director, Suzlon Group.