Budget 2024: CareEdge Ratings Bats For More Support For Renewables

CareEdge Ratings in its latest report on Budget expectations talked about the need to reduce the Goods and Services tax (GST) on renewable energy components upto 5 percent to boost the sector. This comes days before the announcement of the Union Budget by Finance Minister Nirmala Sitharaman. 

CareEdge in its report talked about the need to extend the Inter-State Transmission System (ISTS) charge waiver beyond June 30,m 2023. It also talked about promoting Compressed Biogas (CBG). It also batted for a single-window clearance for standalone storage (BESS/PSPS). 

It also talked the need for favourable adjustment to the ethanol policy. Particularly for the use of sugarcane juice and B-heavy molasses for ethanol production to support the government’s goal of achieving 20% ethanol blending programme. 

“The Union Budget 2023 did not provide any direct benefit to sugar and allied businesses, however, announcements related to agriculture had a positive impact on the industry’s productivity. Govt also exempted basic customs duty on imported ethyl alcohol in tandem with better tax regimes to drive the E20 programme. Sugar & Ethanol Industries are pivotal to India’s agricultural and energy sectors and is seeking specific policy interventions to drive growth, sustainability, and profitability,” the CareEdge report said. 

It also added, “India has reiterated its endorsement for multiplying renewable energy (RE) capacity threefold by 2030 at the COP28 Summit but also remains cognizant of its energy security needs as a developing nation as well as the variability induced by the growing share of RE in its energy mix.”

Some of its other recommendations included- Ensuring adequate power evacuation through dedicated transmission capacity buildout across Green Energy Corridor and ISTS projects, Strict enforcement of central Renewable Purchase Obligations (RPO), fortified by penalties for non-compliant states, rationalisation of GST on RE components from 12% to 5% to reduce end consumer costs and Enhancement of fund allocation for green hydrogen over and above current outlay under the SIGHT programme.