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RK Singh asks Institutes to categorize Renewable Energy different from power sector

In the meeting, it was decided that MNRE would follow up with RBI for removal of the priority sector lending limit for the RE sector.

Devdiscourse News Desk | New Delhi | Updated: 10-06-2019 19:29 IST | Created: 10-06-2019 19:29 IST
RK Singh asks Institutes to categorize Renewable Energy different from power sector
On the issue of delays in land acquisition for RE projects, the Minister said that SECI will be tying up with State Governments for the land. Image Credit: Twitter(@PIB_India)

Shri RK Singh, Union Minister of State (IC) for Power and New & Renewable Energy held a meeting to review various issues pertaining to the Renewable Energy (RE) sector here today. The meeting was attended by various stakeholders including the Secretary, MNRE, senior officials from MNRE, Department of Economic Affairs, Dept. of Expenditure, Dept. of Financial Services, Dept. of Revenue and representatives of Public/Private banks and Financial Institutions.

In the meeting, it was decided that MNRE would follow up with RBI for removal of the priority sector lending limit for the RE sector. This will encourage the PSBs to lend more for RE projects and help RE developers access easy to finance.

In the meeting, Shri RK Singh also asked the Banks/Financial Institutes to categorize RE as separate sector different from the power sector so that funds would flow to RE projects. He further said that current tariff rates discovered for various RE projects are viable as the maintenance/running cost of RE projects is very less in the long run. He also added that with time, the cost of RE technology is coming down whereas the efficiency of RE equipment is improving day by day. So the low tariffs are not an aberration. The Minister also requested banks to come forward to lend to the RE sector.

On the issue of delays in land acquisition for RE projects, the Minister said that SECI will be tying up with State Governments for the land. As the land will be on the lease, therefore there won't be any upfront payment for the land. It will also tie up transmission while floating bids. Banks/Financial Institutions were asked to tie up with SECI for offering predetermined loans to successful bidders.

Discussions were held about the GST issues on RE equipment/ components and Dept. of Revenue was requested to place the appropriate proposal before the GST Council. The issue of inverted duty structure also came up for discussion during the meeting. The Minister said that every measure needs to be taken to promote manufacturing in the RE sector in the country, including corrections of duty structure and approval of a scheme to provide a capital subsidy.

Discussions were held on starting a pilot project to promote solar cooking in the households.

(With Inputs from PIB)

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