Opposition Criticizes Government Over High GST Rates and Renewable Energy Policies

Opposition members in the Rajya Sabha raised concerns about high GST rates and inconsistent policies impacting renewable energy capacity. Congress member Ranjeet Ranjan criticized the increased GST on solar equipment and questioned the practicality of the PM Surya Ghar Muft Bijlee Yojana. Other members highlighted issues in investment and consistency in tax policies.

Opposition members in the Rajya Sabha on Monday voiced concerns over high GST rates and policy inconsistencies adversely affecting renewable energy capacity expansion in India. During a discussion on the functioning of the Ministry of New & Renewable Energy and the Power Ministry, Congress member Ranjeet Ranjan criticized the government for increasing GST on solar energy equipment from 5 per cent to 12 per cent. She argued for a GST reduction to encourage solar power procurement.

Under the Paris Agreement, India aims to add 500 GW of renewable energy, but current additions are far below this target. Ranjan also highlighted that the PM Surya Ghar Muft Bijlee Yojana, advertised as a free scheme, charges 7 per cent interest, making it impractical for the common man. She noted alleged inconsistencies in permits granted to renewable energy developers, favoring larger players at the expense of smaller ones.

Other members, including YSR Congress Party's S Niranjan Reddy, expressed concerns over the necessary investments to achieve renewable energy targets, urging for a conducive ecosystem for private investments. AAP member Sandeep Kumar Pathak pointed out inconsistencies in tax policies that harm the renewable sector's growth.

(With inputs from agencies.)