Solar power is still a budding sector in the nation with seamless benefits and low-cost operation. After the coming of GST in purview, the industry has applied a plea to the Finance and Commerce Ministry as one should know that the heavy costing by the implication of GST scheme will take the effect long.
On this issue, Surender Pal Singh, Chairman, Solar Energy Equipment Manufacturers’ Association of Telangana told that “Currently the sector enjoys almost zero tax structure in most of the states with VAT reimbursement by the state governments and other tax relaxation on solar power plants,”.
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And, “Once GST comes into the picture, if Indian manufacturers are subjected to that, then we will be in great disadvantageous position when compared to China and Taiwan. That would subsequently escalate the cost of the project by 10 to 15 percent and ultimately burden the consumers,”.
A memorandum has already been submitted to the ministry which is looking into the matter while Mr. Singh told some more additional viewpoints over this matter like that the current rate is about Rs 5 per unit and India has installed capacity of solar power 8.1 GW and during the current fiscal it may go up to 15 GW both ground and rooftop. And financial institutions including banks charge at par with other industries though the solar industry as classified as a special category. The mindset of banks on solar industry is not still clear. They are still hesitant when it comes to lending.
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After going through all the complexity of this two community, there is a lot to speculated whether the official would lean the pressure over Solar power industry and ultimately gives a fair relaxation to the general public adding to the more eco-environment.
Meanwhile, there would be a supportive event having roots to the mentioned issue i.e. an exhibition organizer, UBM India, announced that they are hosting the 10th edition of its Renewable Energy India Expo from September 7-9, 2016 at Greater Noida.