Some of the key expectations from Budget 2016 is that Government would support renewable energy in the country, enhancing the Make In India movement to the next level and a firm push on Goods & Services Tax (GST) in India.
As India achieves a new record low price of Rs 4.34/kWh for solar energy, the industry expects that the Union Budget will encourage both fiscal and non-fiscal incentives to push mega solar power projects in the country.
India’s commitment to renewable energy is evident from its active participation in the UN Climate Change Conference in Paris conducted last November. The Indian government cited that it would reduce carbon emissions relative to its GDP by 33% to 35% from 2005 levels by 2030.
This Union Budget, we hope Government will take a step towards making solar installations mandatory, especially for new housings. With this, it is expected that funding from Government will be required to drive aggressive awareness, especially for hot water. We expect Government support to incentivise consumers and manufacturers and promote adoption of this Green Technology considering the concept of Smart Cities has a direct correlation with Smart Energy.
To take Make In India to the next level, the import duties on raw materials need to be toned down, so that the manufacturing sector in India gets a boost. This will also help generate enormous employment opportunities, foster innovation and enhance skill development.
Thinking that improvement in infrastructure is the key to enable manufacturing organisations to expand their market to semi-urban geographies. Transportation and accessibility plays an important role in terms of expansion and penetration.
Implementation of the Goods and Service Taxes (GST) is something that we hope will become a reality with this Budget. We are optimistic that the Budget and the new financial year will help build sturdier relations between the industry and government.
The author is managing director, Racold Thermo Pvt. Ltd. Views expressed here are personal.