GST is about to complete its one year. And India’s solar power industry is very slowly trying to normalize the upset caused in the renewable energy sector post-GST implementation. In a recent move, the Ministry of New and Renewable Energy (MNRE) has relaxed the commissioning period for projects. Reportedly, the extension comes in the light of requests from the Solar Plant developers.
The extension comes as a welcome move for the solar industry plagued by uncertainties. Repeated concerns have been raised over the lower than normal tariffs on renewable power.
Skeptics doubt the profitability of solar projects. The confusion on duties over solar parts still remain. Last year some experts had predicted a negative GST impact on the solar industry.
The extension is limited to projects which have already proven their funding sources or those projects which were on the brink of being commissioned in July-August 2017. The extension will relax:
- Time Period for land acquisition
- Financial Closure (Funding Proof).
- Commissioning Period.
The relaxations are a positive move ahead at a time when environmental effects of non-renewable energy resources are for all to see.
Read Also: Finally Cleared: Solar Power Plants To Attract 18 Percent GST
