Budget 2018: The countdown to the last full Budget of the present government has begun, from the common man to different sectors, each has its own expectations from the Budget. Speaking on the topic of climate change at the World Economic Forum earlier this month, Prime Minister Narendra Modi at the World Economic Forum highlighted India’s ambitious 175 GW target by 2022, and how India is moving towards it rapidly, however, industry players demand more from Finance Minister Arun Jaitley who will present the Budget 2018 on February 1.

In accordance with the Paris Agreement, India has set the target of producing 40% of its total energy through renewable sources. The government has an ambitious target of raising it to 175 GW by 2022 including 100 GW of solar and 60 GW of wind energy.

Also Read: Budget 2018 Arun Jaitley budget speech: Where and how to watch live streaming online and TV coverage

While India’s renewable energy journey has come a long way, with an installed capacity is 58.30 GW, China is way ahead. It has already achieved its 2020 solar PV target three years ahead of time and is set to achieve its onshore wind target in 2019, International Energy Agency (IEA) said in a report.

In the India Budget 2018, energy industry wants more funds and tax rate cuts. “It would be a welcome move if the government streamlines capital allocation towards creating solar parks and associated infrastructure along with green corridors,” Sanjay Aggarwal, managing director, Fortum India, said.

In the previous four Budgets, In 2014-15, the government allocated Rs 956.39 crore and asked for 2,532.80 crore as additional grant; in 2015-16, allocated Rs 303.21 crore and asked for Rs 2803.21 crore as additional grant; in 2016-17, the government allocated Rs 5,035.7 crore and asked Rs 8,632.13 crore as additional grant; and in 2017-2018, the government allocated Rs 5,472.84 crore and asked for Rs 10,814.54 crore as additional grant. However, this is not enough.

Also Read: Budget 2018: Top five advice from CEA Arvind Subramanian to Arun Jaitley

The Economic Survey 2018, tabled in the Parliament ahead of the Union Budget 2018, said that the government needs to revisit subsidies and incentives for renewables because its tariff is approaching grid parity and some discoms are insisting for renegotiation of already inked PPAs.

Watch Video: Railway Budget 2018: Instead Of Raising Fares, Introduce Graded Tariff Structure

“The discovery of very low (renewable) tariffs through the auctioning process, though a welcome news, possibly contributed to some demands for the renegotiation of the already signed PPAs. Some discoms have hinted at the possibility of renegotiating the PPAs signed by them at tariffs higher than those in the recent bids,” the survey said.

India, China and the US will expand renewable energy by 2022, and account for two-thirds of global renewable expansion.