Stable Policy, Credit Guarantee: What Renewable Energy Sector Expects From Budget 2022

Budget 2022 Expectations: From electric vehicles to solar cells, the world is fast developing towards renewable energy. At this time, there is a realisation that excessive dependence on fossil fuels to strengthen economy will not be sustainable in the long run. Moreover, India is also making every effort to boost its green energy generation and launching multiple projects to harness the power of wind, solar, and water. As Union Finance Minister Nirmala Sitharaman is all set to present Budget 2022-23, companies are eagerly waiting to know if there are incentives to move towards greener technologies.Also Read – Capital Expenditure, Reduction in GST: 10 Things India’s Middle Class Expects From Budget 2022

Expressing its expectations, industry body FICCI has sought tax relaxations and credit guarantees for companies operating in the renewable energy sector to accelerate technology adoption. In a statement, the FICCI said in order to realise the objective of making India a green economy, an environment for rapid adoption of technology is required to make use of renewable energy. Also Read – Budget 2022 Expectations: Experts Want FM To Revise Income Tax Slabs, Provide Tax Free WFH Allowances

Some experts in the field said that the Budget 2022 should focus on long-term policy stability to promote investments in the renewable energy sector. They also believe that the Centre should reduce customs duties on electrolysers to boost green hydrogen space and provide tax rebates to the residential solar prosumers. Also Read – Enhancement In Basic Income Tax Exemption Limit Of Rs 2.5 Lakh Highly Awaited

Speaking to Economic Times, Sumant Sinha, chairman and chief executive officer (CEO), ReNew Power, said the budgetary allocations for the expansion of domestic manufacturing capabilities, such as the PLI scheme, will help boost RE growth. He added that the move is expected to provide an impetus for manufacturing of clean energy equipment such as solar panels, electrolysers, batteries and wind turbines.

Sharing his expectations, Sanjeev Aggarwal, managing director and CEO, Amplus Solar, told ET that it will be useful for the country to provide tax rebates to the residential solar prosumers so that the solar rooftop and storage segments can pick up in a big way.

However, the industry executives say that one of the biggest challenges for investors in the sector has been the issue of delayed payments from discoms to independent power producers.

Gyanesh Chaudhary, vice-chairman and managing director of Vikram Solar, a Kolkata-based solar module manufacturer, told ET that the Budget should include targeted initiatives and policies to strengthen the domestic solar manufacturing ecosystem.

It must be noted that the Parliament’s Budget session will begin on 31 January 2022 and the Union Budget will be presented on 1 February 2022.