Budget 2017 – Solar / Renewable Synopsis

Indian Budget 2017

  • 80 IA benefit for projects now stands withdrawn from 2017
  • Accelerated Depreciation stands at 40%
  • Allocated an outlay of above Rs.10,000 crore for 2016-17. This outlay includes Rs.5,000 crore from the National Clean Energy Fund (NCEF) with the balance coming from Internal & Extra Budgetary Resource (IEBR). A significant part of viability gap funding for solar power projects is intended to be financed out of such cash outlay.
  • On the taxation front, the clean environment cess on coal, lignite and peat has been doubled from Rs.200 per tonne to Rs.400 per tonne; encouraging the use of renewable sources of energy
  • 7,000 railway stations with solar power in the medium term currently in only 300 stations. Work will be taken up for 2,000 railway stations as part of 1000 MW solar mission.
  •  Government now propose to take up the second phase of Solar Park development for additional 20,000 MW capacity.
  • Solar tempered glass for use in the manufacture of solar cells/panels/modules , Basic Customs Duty reduced to NIL from current rates of 5%
  • Parts/raw materials for use in the manufacture of solar tempered glass for use in solar photovoltaic cells/modules, solar power generating equipment or systems, flat plate solar collector, solar photovoltaic module and panel for water pumping and other applications, subject to actual user condition, CVD reduced to 6% from current rates of 12.5%
  • All items of machinery required for fuel cell based power generating systems to be set up in the country or for demonstration purposes, subject to certain specified conditions , BCD Reduced to 5% from 10%/7.5% and CVD Reduced to 6% from 12.5%
  • All items of machinery required for balance of systems operating on biogas/ bio-methane/ by-product hydrogen, subject to certain specified conditions , BCD Reduced to 5% from 10%/7.5% and CVD Reduced to 6% from 12.5%
  • Ministry of New & Renewable Energy will get budget allocation of Rs.5473 Crores in FY 2017-18, up from Rs.5036 Crores in FY 2016-17
  • Pilot plants for environment friendly disposal of solid waste and conversion of biodegradable waste to energy are being set up at New Delhi and Jaipur railway stations. Five more such solid waste management plants are now being taken up.
  • Resin and catalyst for use in the manufacture of cast components for Wind Operated Energy Generators [WOEG], subject to actual user condition , BCD reduced to 5% from 7.5%, CVD reduced to NIL from 12.5%, SAD reduced to NIL from 4%
  • India is on its way to achiev 100% village electrification by 1st May 2018. An increased allocation of ` 4,814 crores has been proposed under the Deendayal Upadhyaya Gram Jyoti Yojana in 2017-18.

About Ritesh Pothan

Ritesh Pothan, is an accomplished speaker and visionary in the Solar Energy space in India. Ritesh is from an Engineering Background with a Master’s Degree in Technology and had spent more than a decade as the Infrastructure Head for a public limited company with the last 9 years dedicated to Solar and Renewable Energy. He also runs the 2 largest India focused renewable energy groups on LinkedIn - Solar - India and Renewables - India
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