Ahead of the budget, Renewable Energy Ministry of India has directed Finance Ministry for certain considerations like excise duty exemption and 10-year tax holiday for solar segment.
The Ministry of New and Renewable Energy (MNRE) has put forward some suggestions to Finance Minister Arun Jaitley with an aim to promote the solar energy sector of the country.
Moreover, the ministry has asked for 25 per cent capital subsidy through the modified special incentive package scheme or NCEF for equipment manufacturing for the solar energy sector.
In addition, according to the officials, customs and excise duty exemptions have also been demanded.
Power, Coal and Renewable Energy Minister Piyush Goyal also asked Jaitley to announce new financing models which will help the sector attract overseas funds, while revising the inverted duty structure.
Solar energy segment in India is still in the initial stages of growth. With an aim to push the domestic manufacturing needs, solar program in the country needs special incentives to push the growth.
The recently held RE-INVEST program has seen 293 companies committing to generate 266 GW of renewable energy in the next five years on the first day of the event.
Minister has announced that government aims to achieve 100,000 MW of solar power capacity by 2022.
Out of this total target, almost 40 percent will be contributed by solar rooftop panels, which will be largely set up on government owned buildings like railway stations and defense establishments.
Finance Minister Jaitley will unveil India government’s budget for 2015 on February 28.
Sabeena Wahid
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