Budget 2019 – Government to rope in worldwide companies to set up solar production units, batteries, charging infra
New Delhi: Through auction, the government will launch a scheme to bring in worldwide companies to set up mega-production plants in India for solar cells, batteries and solar charging infrastructure and provide tax advantages for these investments. The plan was suggested by the Finance minister Nirmala Sitharaman on Friday in the general budget.
“Government will launch a scheme to invite worldwide firms to set up mega sunrise manufacturing plants and sophisticated technology regions such as semiconductors manufacturing through transparent bidding” said the finance minister.
She also said that the scheme will include solar photovoltaic cell devices, lithium storage batteries, solar charging facilities, computer servers, laptops, etc.
The government will “provide them investment related exemptions from income tax under 35 AD of the income tax and other indirect tax advantages.”Inadequate manufacturing capacity for national solar machinery has been a problem for many years, particularly in perspective of India’s ambitious renewable energy target of 175 GW by 2022.
According to industry estimates, the country’s production capacity for solar cells and module is around 12GW. The project developers are strongly dependent on machinery imports in India to set up solar power capacity.
According to the economic survey tabled in the parliament on Thursday, in perspective of the goal of getting 175 GW of clean renewable by 2022, India has the potential for USD 30 billion annual investment in renewables in the next decade and even beyond.
In the budget, the government has proposed Rs.12,353.81 crore investment by the Indian Renewable Energy development agency and solar energy corporation for the fiscal, up from Rs.10,835.14 Crore in 2018-19.