GST Cut Brightens India's Renewable Energy Prospects

The GST reduction on renewable energy is set to save investors up to Rs 1.5 lakh crore by 2030, aiding India's goal of 500 GW renewable capacity. Announced on Navratri by Union Minister Pralhad Joshi, the tax cut reduces costs for solar projects, notably benefiting farmers and residential solar schemes.

In a significant move for India's green energy sector, Union Minister Pralhad Joshi announced the GST reduction on renewable energy, projected to save investors up to Rs 1.5 lakh crore by 2030. The tax cut, effective from Navratri, aligns with the country's ambitious renewable targets.

The decision by the GST Council to lower tax rates marks a critical boost to India's renewable energy aims, with 500 GW slated for 2030. Minister Joshi highlighted Prime Minister Narendra Modi's role in the GST cut, specifically reducing it on renewable equipment from 18% to 5%.

Key beneficiaries include the PM Surya Ghar initiative and farmers under PM-KUSUM, which will see substantial cost reductions. This follows a record clean energy auction in Madhya Pradesh, securing low solar power costs. India is leading globally, with installed capacity from non-fossil sources already halfway to its 500 GW goal.

(With inputs from agencies.)