Analyse and adopt best global practices in India

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: Globally, including in developed economies of Europe and US, renewable energy has thrived on the back of policy stimulus.

In India too we need a comprehensive and overarching renewable energy policy framework and corresponding legislative provisions need to be evolved in line with it. For this we need to analyse the best of such proactive measures adopted by various countries and suitably adapt these to India.

Such policies and legislations need to focus on efficiency and cost of energy generation. For this we need to formalise generation-based incentive scheme that was announced on experimental basis last year by MNRE for those who do not wish to avail of accelerated depreciation benefit and actively promote use of world class technology. This would also promote institutional buyers including foreign project developers.

Besides, there should be priority and concessional financing support for the industry and enforcement of renewable purchase obligations by states. Enabling speedier land and evacuation permissions and ensuring remunerative feed-in tariffs, and encouraging PSUs to take a lead in promoting renewable energy are needed. Finally, the government should address the implementation level issues of training and development.

Bring solar energy industry under priority sector lending

K Subramanya CEO, Tata BP Solar

The solar energy industry in India is poised for a major growth in the coming years. Though the government has been supporting it through a variety of incentives and support measures, at the same time there is a contradiction in the policy regime as solar energy appliances such as solar home lighting systems, solar water heaters and other solar PV (photovoltaic) products attract CST at 2%-4% as well as VAT at 4% at the states level.

This tax pushes up the cost of the solar appliances and acts as a deterrent for the growth of the solar market.

Similarly while the PV module as a whole can be imported duty-free, some of the raw material that goes into manufacturing the modules such as silver paste and EVA attracts import duty. This makes the indigenously manufactured solar modules more expensive than imported ones. This anomaly should be corrected in the budget.