Power and renewable energy minister Piyush Goyal said he urged the finance minister to come out with innovative financial models, and amend the inverted duty structure in the upcoming budget to help the sector attract overseas funds.
With both domestic and international companies committing to invest over $200 billion to kick start India’s renewable energy plans in the solar and wind power sectors, the government is looking at “innovative models” to encourage investors and companies, and tap the potential of green power.
Goyal told reporters on Friday, “I hope the finance minister will correct in this budget more inverted duties flagged by this ministry.”
Indian manufacturers have asked for scrapping of the inverted duty structure, where finished goods are taxed at rates lower than that on raw materials, as this has been hampering manufacturers in the solar energy sector.
Goyal said the finance minister had assured that the budget would be investor-friendly and growth-oriented.
India has plans to add 1,75,000 mega watt of renewable energy by 2022. This includes one lakh mega watt of solar and 40,000 MW of wind energy. The rest would include small hydel and bio-fuel-based power capacity addition.
Finance minister Arun Jaitley will announce the NDA government’s first full-fledged budget on February 28. In the previous budget, the government had allotted Rs. 1,000 crore for developing ultra-large solar power plants and solar parks.
The renewable energy ministry is organising a two-day global investors’ meet starting Sunday to attract large-scale financing.