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Budget2016 Renewable energy - read breaking and trending Budget2016 news, stories, headlines. Business insider India is providing latest, handpicked stories related to the Renewable energy category.

Budget2016 Renewable energy - read latest and trending Budget2016 news and headlines

budget2016 infrastructure renewable-energy

Asian Development Bank (ADB) will provide a $ 500 million credit for introducing sun-based rooftop frameworks to help India expand its renewable vitality impression. 
 
The financing involves $330 million from ADB and $170 million from the multi-benefactor Clean Technology Fund, controlled by the subsidizing agency. 
 
"This funding should mean that 11 million fewer tonnes of greenhouse gases are emitted over the typical 25-year lifetime of solar rooftop systems," ADB said. 
 
The financing will be channalised through state-possessed Punjab National Bank, which will utilize the ADB assets to tender loans to different developers and end-clients all over the nation to set up sun based housetop frameworks. 
 
"There is a huge potential for India to expand its use of solar rooftop technologies because of the sharp drop in the price of solar panels, meaning the cost of producing solar energy is at or close to that from fossil fuels," said Anqian Huang, finance specialist in ADB's South Asia Department. 
 
Sourcing more solar energy will also help India meet the carbon emissions reduction target that it has committed to, as part of the recent global climate change agreement, Huang said. 
 
Consolidated with an extra $ 300 million in subproject value speculation and $ 200 million in advances from business banks and different agents, the whole cost of the Solar Rooftop Investment Program is $ 1 billion. 
 
The Government aims to increase the amount of energy sourced from solar rooftop systems to 40 gigawatts by 2022. 
 
India has focused to lower its carbon outflows by 33% from 2005 levels in order to substitute it by non-fossil fuel based power under the 2015 Paris climate agreement. 
 
In addition, ADB has additionally dedicated to twofold its yearly financing for atmosphere relief and adaption to $ 6 billion by 2020 to bolster India's cause. 
 
The solar rooftop business sector is still at an early phase of advancement in India and familiarity with the most recent advances and the money related advantages is low. 
 
Banks see lending to such projects as risky, partly because of limited past experiences.

ADB is helping India realize its solar dreams, to provide $500 mn loans for solar rooftops

The renewable energy industry is upbeat after Finance Minister Arun Jaitley presented the Budget today. 
 
Mr Ratul Puri, Chairman of Hindustan Powerprojects - one of the first companies to set up solar projects in India - shared what he feels the Budget has in store for this key sector. Here's what he said: 
<ul>
	<li>
		The government’s plan to meet the fiscal target is a welcome move as this will allow reduction in interest rates which will benefit all sectors of the economy. </li>
	<li>
		The focus on infrastructure spending through Deendayal Upadhayaya Gram Jyoti Yojna and the Integrated Power Development Schemes is clearly visible with a massive outlay of Rs 221,246 crore for 2016-17.</li>
	<li>
		The thrust on connecting the unconnected by May 1, 2018, augurs well for the Country and the sector along with the ‘ease of business’ will catch the attention of the investors for the sectors. This would be another significant goal post that government would have scaled, once UDAY is successfully implemented. </li>
	<li>
		The Government has also set itself a target that could be difficult to achieve – double farmers' income in the next five years and they should have also addressed the skilling issue that is likely to face in the near term with 10 million joining the employment market every year.</li>
</ul>

The Renewable energy industry seems upbeat after the Budget, here's why

This time when Finance Minister Arun Jaitley will present Budget 2016-17 on February 29, the renewable energy sector will be pinning hopes as they have sought VAT exemption and incentives for solar parks. 
 
The solar industry has demanded a sovereign fund to back dollar-denominated solar tariffs, solar equipment exempted from value added tax (VAT) as well as stability in wind power policies from Jaitley. 
 
FICCI maintained that solar parks should be exempted from MAT. 
 
"Solar parks should be treated at par with special economic zones (SEZs) and minimum alternate tax (MAT) exemption may be provided to power projects within solar parks," FICCI’s pre-budget memorandum stated. 
 
The industry body has also sought 2% export incentive that was given for solar components until last year but now is restricted to Category B countries. 
 
Renewable energy projects have the benefit of accelerated depreciation (AD) by which developers are allowed to claim 90% depreciation in the first year of functioning itself. 
 
Experts say the dollar-based solar tariff fund would be huge for foreign investors worried about the depreciating rupee. 
 
Meanwhile, solar manufacturing has a different view. 
 
"The simple problem with solar cell and module manufacturing in India is that it is not competitive," Jasmeet Khurana, associate director consulting, Bridge to India, told ET, adding “making them cheaply and well depends on scale, access to cheap capital, vertical integration with access to cheap and reliable energy and a level playing field against other Asian manufacturers. None of these are available in India."

Budget 2016: Renewable energy sector seeks VAT exemption on solar equipment, tariffs

As the Modi government is gearing up for <a href="http://www.businessinsider.in/searchresult.cms?query=Budget+2016">Budget 2016</a>, we decided to take a look back at <a href="http://www.businessinsider.in/searchresult.cms?query=Budget+2015">Budget 2015</a>’s allocations for the <a href="http://www.businessinsider.in/searchresult.cms?query=renewable+energy">renewable energy</a> sector. 
 
The Indian government had announced $400 Million for <a href="http://www.businessinsider.in/searchresult.cms?query=renewable+energy">renewable energy</a> expansion and adaptation to climate change in Budget 2015. This money was supposed to be used in building grid-connected and distributed <a href="http://www.businessinsider.in/searchresult.cms?query=renewable+energy">renewable energy</a> projects. 
 
Around $12.5 million was allocated to boost production of electric and hybrid vehicles. Tax concessions were offered on the import of components used in the manufacturing of such vehicles. This was seen as a significant step to tackle the country’s growing air pollution issue. 
 
The government also doubled tax on every metric ton of coal imported or produced. This tax doubled for the second consecutive time. It’s now over $3.3 per Metric Ton. However, the allocation to the National Clean Energy Fund (NCEF) remained the same at $780 million. The revenue collected from tax on coal imports and production was announced to be used to finance renewable energy projects. 
 
The government also announced lower tax rates for manufacturing solar power components. 
 
In the last financial year that will end in March 2016, the renewable energy target was 4,460 MW, a 24% hike over FY2014-15. 
 
India’s Prime Minister <a href="http://www.businessinsider.in/searchresult.cms?query=Narendra+Modi">Narendra Modi</a> might have promised 175 Gigawatts of <a href="http://www.businessinsider.in/searchresult.cms?query=renewable+energy">renewable energy</a> by 2022. Of this target capacity, 100 GW is planned to be Solar power, 60 GW Wind power, 10 GW from Bio-mass and 5 GW from Hydro-electric power. However, the Central government's budget allocation for <a href="http://www.businessinsider.in/searchresult.cms?query=solar+energy">solar energy</a> for the current financial year is merely 0.45% of the required investment. 
 
Let’s hope <a href="http://www.businessinsider.in/searchresult.cms?query=Arun+Jaitley">Arun Jaitley</a> makes some serious reforms to ensure India meets its ambitious target.

Look Back with
Skepticism – Renewable Energy

The <a href="http://www.businessinsider.in/searchresult.cms?query=Narendra+Modi">Narendra Modi</a> government is currently working on a host of incentives for the <a href="http://www.businessinsider.in/searchresult.cms?query=Solar+energy">Solar energy</a> sector. This is mainly for solar power plants with generation capacity of 3,000 MW or more. The final announcement is expected on Budget day, that’s February 29. 
 
An inter-ministerial committee headed by the Department of Industrial Policy and Promotion (DIPP) Secretary has finalized this report and submitted it to the Prime Minister's Office. The committee has proposed both fiscal and non-fiscal incentives to push mega <a href="http://www.businessinsider.in/searchresult.cms?query=Solar+energy">solar power</a> projects across the country. 
 
The proposal includes several suggestions for the government. This includes power purchase agreement, grid connection, land to put solar panels and manufacturing of equipment. 
 
The ministries of New and <a href="http://www.businessinsider.in/searchresult.cms?query=renewable+energy">Renewable Energy</a>, Power, Finance, and Commerce and Industry among others are involved in the process. 
 
The <a href="http://www.businessinsider.in/searchresult.cms?query=Narendra+Modi">Modi </a>government has set an ambitious target to raise the solar power generation capacity by five times to 1,00,000 MW by 2022. If India achieves this target it will become one of the largest producers of <a href="http://www.businessinsider.in/searchresult.cms?query=renewable+energy">renewable energy</a>, bypassing several developed countries. 
 
It’s now a matter of two weeks that we get to know how serious the government is about its green energy commitments.

Budget 2016 – Solar Projects may
enjoy incentives

India’s Prime Minister <a href="http://www.businessinsider.in/searchresult.cms?query=Narendra+Modi">Narendra Modi</a> might have promised 175 Gigawatts of <a href="http://www.businessinsider.in/searchresult.cms?query=renewable+energy">renewable energy</a> by 2022, but there is little hope for those expecting India to meet its ambitious target. 
 
<a href="http://www.businessinsider.in/searchresult.cms?query=Budget+2015">Budget 2015</a> allocated Rs. 4,500 Crores to the <a href="http://www.businessinsider.in/searchresult.cms?query=MNRE">MNRE</a> (Ministry of New and Renewable Energy). This time the Ministry wants more. This time they’ve sought over Rs 10,000 Crores, a senior official in the ministry told reporters. Obviously, last year’s budgetary allocation was insufficient. 
 
"Different schemes which have taken off are Viability Gap Funding of the <a href="http://www.businessinsider.in/searchresult.cms?query=MNRE">MNRE</a> and green energy corridor," the official said. 
 
The government has 175 Gigawatts as target for <a href="http://www.businessinsider.in/searchresult.cms?query=renewable+energy">renewable energy</a> generation by 2022. Of this 100 GW is planned to be Solar power, 60 GW Wind power, 10 GW from Bio-mass and 5 GW from Hydro-electric power. 
 
All of this would require investment of around $150 billion in investment over the next seven years. However, the Central government's budget allocation for solar energy for the current financial year is merely 0.45% of the required investment. 
 
This December, a Parliamentary panel mentioned that the insufficient capital allocation can hamper India’s 175 GW <a href="http://www.businessinsider.in/searchresult.cms?query=renewable+energy">renewable energy</a> capacity ambitions. However, there was no real mention of exact capital requirements. It only said that sufficient funds must be allocated to ensure that the lack of funds don’t come in the way of India’s ambitious <a href="http://www.businessinsider.in/searchresult.cms?query=renewable+energy">renewable energy</a> plans. 
 
The panel also expressed concerns about the insufficient capital allocation. 
 
The Modi government will present <a href="http://www.businessinsider.in/searchresult.cms?query=Budget+2016">Budget 2016</a> on February 29, 2016. Let’s wait and watch if they take heed to these capital demands.

Budget 2016 - Renewable Energy Ministry
starved for Funds?

Indian Prime Minister <a href="http://www.businessinsider.in/searchresult.cms?query=Narendra+Modi">Narendra Modi</a> has vouched for 175 Gigawatts of <a href="http://www.businessinsider.in/searchresult.cms?query=renewable+energy">renewable energy</a> by 2022. He has also promised 12 GW of Power by the end of 2016 - three times the current capacity! In case you forgot, this was at the India Pavilion at the Paris Climate Change Conference. 
 
Awesome as it might sound, that’s a tall claim. Even by <a href="http://www.businessinsider.in/searchresult.cms?query=Narendra+Modi">Narendra Modi</a>’s standards. India’s <a href="http://www.businessinsider.in/searchresult.cms?query=renewable+energy">renewable energy</a> capacity addition between 2002 and 2014 has been around 20% YoY. However, the total capacity remains only a fraction of the target. 
 
The big question now is, can India reach the ambitious target it has fixed for itself ahead of <a href="http://www.businessinsider.in/searchresult.cms?query=Budget+2016">Budget 2016</a>? 
 
Let’s have a look at what the government has done in the sector so far! 
 
· The US has allowed a grant of $4 billion to push India’s <a href="http://www.businessinsider.in/searchresult.cms?query=renewable+energy">Renewable energy</a> goals. 
· 266 GW worth commitments were received at the RE-Invest Conference held in February 2015. As many as 27 Banks are ready to finance 72 GW <a href="http://www.businessinsider.in/searchresult.cms?query=renewable+energy">renewable energy</a> projects. 
· India has signed a MoU with Germany to promote solar energy. As a part of this, Germany will allow low-interest loans in the range of 1 Billion Euro over the next 5 years. 
 
Most analysts don’t see a huge leap in terms of budget allocation for the <a href="http://www.businessinsider.in/searchresult.cms?query=renewable+energy">renewable energy</a> sector. The government’s investments, however, could be in the form of subsidies and tax-free bonds. It’s been doing that with rooftop solar panels for a while.

Budget 2016 – India’s Report Card
for Renewable Energy

"We have a target for <a href="http://www.businessinsider.in/searchresult.cms?query=renewable+energy">renewable energy</a> generation of 175 Gigawatts by 2022. We have got off to a good start with nearly 12 GW likely to be installed by 2016, more than three times the current capacity,” Prime Minister <a href="http://www.businessinsider.in/searchresult.cms?query=Narendra+Modi">Narendra Modi</a> said at the Paris Climate Change Conference. The Indian Prime Minister’s statements were met by awe and applause. 
 
Of this target capacity, 100 GW is planned to be <a href="http://www.businessinsider.in/searchresult.cms?query=Solar+energy">Solar power</a>, 60 GW Wind power, 10 GW from Bio-mass and 5 GW from Hydro-electric power. However, the Central government's budget allocation for solar energy for the current financial year is merely 0.45% of the required investment. 
 
That’s exactly why <a href="http://www.businessinsider.in/searchresult.cms?query=Budget+2016">Budget 2016</a> is going to be a game-changer for the renewable energy sector. 
 
Power Minister <a href="http://www.businessinsider.in/searchresult.cms?query=Piyush+Goyal">Piyush Goyal</a> has said that to achieve the 100 GW target by 2022, India would require an estimated investment of over $89.88 billion at the rate of Rs. 6 Crores per MW. That’s not cheap. 
 
The International Energy Agency has predicted that India’s <a href="http://www.businessinsider.in/searchresult.cms?query=renewable+energy">renewable energy</a> capacity can reach 147 GW by 2020 only if the government invests $120 billion in capital and $40 billion in equity. 
 
It has to be noted that the government’s investments may not necessarily be capital in nature. It can push the sector with subsidies and tax-free bonds too. It has been pushing rooftop <a href="http://www.businessinsider.in/searchresult.cms?query=solar+panels">solar panels</a> via that method anyway. 
 
<a href="http://www.businessinsider.in/searchresult.cms?query=Budget+2016">Budget 2016</a> is going to be a game-changer for the <a href="http://www.businessinsider.in/searchresult.cms?query=renewable+energy">Renewable Energy</a> sector. 
 
Image credit: Indiatimes

Renewable
Energy – Why Budget 2016 is mega important

At a time when the Indian government is doing whatever possible to pass the <a href="http://www.businessinsider.in/searchresult.cms?query=GST+bill">GST bill</a> in Rajya Sabha, the Ministry of New &amp; Renewable Energy (<a href="http://www.businessinsider.in/searchresult.cms?query=MNRE">MNRE</a>) has sought exemption from it. 
 
As per the ministry, the <a href="http://www.businessinsider.in/searchresult.cms?query=GST+bill">GST bill</a> will shoot up the cost of setting up <a href="http://www.businessinsider.in/searchresult.cms?query=renewable+energy">renewable energy</a> systems, be it solar, wind or hydro-power projects, as much as 20%. 
 
The renewable energy sector enjoy a slew of incentives, including 100% tax holiday on the earnings for 10 years, concessional excise and custom duties and so on and <a href="http://www.businessinsider.in/searchresult.cms?query=GST">GST</a> could increase the pricing. 
 
The MNRE has sent its request to the revenue department. 
 
"We are requesting an exemption. The <a href="http://www.businessinsider.in/searchresult.cms?query=GST">GST bill</a> has provisions for exemptions by state governments and we believe that renewable energy is a fit case for exemption. We are in dialogue with the Department of Revenue and they do see merit in our argument," a highly placed official from MNRE confirmed to ET. 
 
Let's wait till Budget 2016 to see if this demand is met by the government. 
 
Image credit: Indiatimes

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