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Pre – Budget NSEFI Suggestions to Union Government

“In the Union Budget 2018 the Government should re-iterate its strong commitment and push for Renewable Energy with Increased Emphasis on Agricultural Use of Solar”– says NSEFI Chief Pranav R Mehta

NSEFI has already submitted the following suggestions to the Union Government for solar sector growth.

NSEFI Suggestions for Union Budget 2018 – 19

1. Increased Emphasis on Agricultural Use of Solar :

Agricultural use of solar energy should be encouraged with greater emphasis than at present. A separate scheme needs to be evolved whereby farmers not only generate electricity for their own captive use but supply the surplus to the grid through the net metering mechanism. In addition, the use of solar Sheffler and other parabolic dishes for drying applications should be encouraged.

2. Electricity Supply by Solar and RE Companies to be brought in the GST Network :

Electricity Supply by solar and RE companies should be brought in the GST Net with marginal 2 percent rate.

3. GST Rate for Solar Generation plants :

GST Rate for Solar Generation plants, including for solar modules, all Balance of System components for solar use – including inverters, structures, cables, wires, nuts, bolts and services for the same should be reduced to Zero GST Rate.

4. A comprehensive Package for Solar Manufacturing in India :

It has been our long pending demand that there should be a comprehensive package to encourage Solar Manufacturing in India to make Indian solar cells and modules globally competitive both in terms of quality and price. Such a package may include Interest Subvention, Capital Subsidy, Electricity at concessional rates, speedy land acquisition etc.

5. Anti Dumping Duty – if imposed :

If Anti Dumping Duty is to be imposed it should be with prospective effect and should not be made applicable to already bid out and awarded projects.

6. Accelerated Depreciation for an industrial, commercial and social institution to be restored at 80 percent:

Accelerated Depreciation@ 80 percent should be restored for all solar installations, including for Rooftop installations on Commercial and Industrial premises.

7. State of Art Battery Manufacturing to be incentivized :

In view of the anticipated rapid transition to Electrical Vehicles in the country, it will be desirable that large-scale, distributed, State of Art Battery Manufacturing plants consistent with the Prime Minister’s “ Make in India” plans, should be suitably incentivized – with an emphasis on rapid charging Batteries.

8. Some of these measures are already under the consideration of the Govt. of India and should be given a concrete shape by the allocation of proper funds in the Budget.

9. No Import Duty or GST applicability for all the supply items for Solar Manufacturing in India.

10. Skill Development and Employment Generation :

There is further need for increased emphasis on skill development in all areas of Solar development that is for solar plant installation, Manufacturing, Planning, Management, as also Operation and Maintenance.

11. R&D and Technology Demonstration Budget to be generously increased to at least three times the present Budget.

12. New Scheme and Funds for Technology Up gradation and Expansion of Solar Industry :

A suitable scheme for Technology Upgradation and Expansion of Solar Industry should be announced with an initial fund allocation of Rs. 2500 Crores and the unutilized portion of this budgeted amount to be carried forward to the next year.

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