In­cred­i­ble op­por­tu­nity for re­new­able en­ergy

Electrical Monitor - - BUDGET REACTIONS -

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.

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