Commissioning dates for GST-hit solar projects extended

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New Delhi | June 22, 2018 3:36 AM

Responding to requests from solar plant developers, the Ministry of New and Renewable Energy (MNRE) has extended the commissioning period for projects hurt by the disruption caused by the introduction of the GST from July 2017.

Commissioning dates for GST-hit solar projects extended

Responding to requests from solar plant developers, the Ministry of New and Renewable Energy (MNRE) has extended the commissioning period for projects hurt by the disruption caused by the introduction of the GST from July 2017. Extensions would be applicable for projects which were supposed to be commissioned, or submitted proofs of funding arrangements made for developing power plants in July-August 2017. The development closely follows the government relaxing the time frames for land acquisition, financial closure and commissioning period for solar projects.

Such relaxations should be positive for the solar industry as it is riddled with the scepticism about the viability of ultra-low renewable power tariffs discovered in the latest auctions and uncertainties related to proposed duties on solar components. Analysts at Bridge to India said last year that the new tax regime would have a marginally negative impact on the solar industry.

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