Renewable Energy Industry
“With pressure on countries for climate action and India’s climate commitments of COP26 and COP27, India has been ramping up its efforts towards a greener and more sustainable economy. Industry experts are hoping to reap maximum benefits with the expectation of some tweaks in the tax implications in the upcoming budget. India has taken a Net Zero Pledge by 2070; therefore, it becomes important to have incentives to promote renewable energy, 2G ethanol, and flex-fuel hybrid vehicles and to create an Indian market for decarbonisation (Carbon credits).
The government has already approved an outlay of Rs. 19,744 Crores towards the National Green Hydrogen Mission, but to ensure access to low-cost capital for Renewable Energy, Battery Energy Storage Systems and Green Hydrogen project development, the budget 2023 should take measures in line with other RE-focused regions and economies across the globe. The Industry is further looking at the inclusion of petroleum products in GST to reduce costs and offer incentives to OEMs and tax benefits to ESG Bond issuances. Another expectation from the Union Budget 2023-24 is the inclusion of the Power sector, Railway or Airport redevelopment under Section 35AD as a specified business, wherein specific businesses can claim a tax deduction on their capital expenditure.”