Mr Gyanesh Chaudhary, Vice-Chairman & Managing Director, Vikram Solar Ltd

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Union Budget Recommendations, 2022 Gyanesh Chaudhary, Vice-Chairman & Managing Director

“In order to achieve target of 500 GW renewable energy by 2030 announced at COP26 and enable the Aatmanirbhar Bharat vision, we are hopeful the Government will continue the targeted initiatives and policies to further strengthen the domestic solar manufacturing eco-system.  This will accelerate economic recovery, create jobs, attract investments, increase exports, reduce dependence on imports and enable India’s Energy Security. To enhance global competitiveness of domestic solar manufacturers, the imposition of Basic Customs Duty (BCD) on solar cells & modules effective 1st April 2022, increasing the production-linked incentives (PLI) funding outlay for solar modules, enhancing the export incentive- Remission of Duties or Taxes on Export Product (RoDTEP) rates and ensuring it includes AA (Advance Authorisation) along with SEZ are critical policy interventions.  We also urge the finance ministry to consider 5% Interest Subvention on term loans and working capital and upfront Central Financial Assistance of 30% on capex.

Further, to encourage domestic solar manufacturers to build scale with quality, the government should consider capital subsidy of 50% for setting up R&D and Quality testing infrastructure within the manufacturing unit and super deduction of 200 % for R&D expenses for solar technology development.  The upcoming Budget must also consider allowing clearance from Special Economic Zones (SEZ) units to Domestic Tariff Areas (DTA) on a duty forgone basis. Additionally, we also recommend allowing conversion of SEZ units into DTA and permitting them to continue operating from the same infrastructure with enabling policies.”

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