GST reforms to yield significant benefits to renewable energy sector: Minister Prahlad Joshi

New Delhi [India] September 22 (ANI): Goods and Services Tax (GST) reforms in the renewable energy sector is expected to yield significant benefits, particularly in cost savings, says Pralhad Joshi, Minister for New and Renewable Energy.

Speaking with ANI on the sidelines of the 6th International Energy Conference and Exhibition in New Delhi, Joshi said, “We are able to install around 248 gigawatts because our target is 500 gigawatts by 2030. So to install this 248 gigawatts, the savings will be around 1 lakh crore to 1.5 lakh crore because it (GST) has come down from 18 per cent to 5 per cent.”

The minister said that these latest reforms in GST would benefit the industry and also the consumers. He asked the industry to pass on GST cut benefits to consumers by reducing prices in proportion to the cut in GST effective today.

“Pass on the benefits of GST reforms to the common man and poor people of this country,” he said, adding that the industry should celebrate the rollout of GST reforms and call it “Bachat ka Celebration,” he said.

The minister said that GST reforms will see a saving of Rs 1.5 lakh crore for consumers, “So because of that, savings will be around 1 lakh crore to 1.5 lakh crore. This is the biggest ever. You are calling this GST 2.0. GST 2.0 is the biggest reform. This is bigger reform This is the next-gen GST reform,” he said.

Joshi said GST reforms are possible because of the political stability in the country since 2014 under the leadership of Prime Minister Narendra Modi. The Union Minister said his ministry is in regular consultation with state governments to boost renewable energy production in the country.

“We are regularly talking to the states to accelerate the work. The second round of talks would start very early. We wil try to convince states (to focus more on renewable energy production),” he said

“Earlier during 2014, cost of renewable energy per unit was 10 rupees per unit and now it is reduced to 2.7 rupees per unit. In some places in Madhya Pradhesh like Neemuch it is further lowered to 2.15 rupees per unit,” he added.

The Minister said that the union government is prioritizing domestic manufacturing, strengthening the power grid, enhancing storage, and improving access to finance to make renewable energy production more sustainable, resilient, and cost-effective, aiming to reach 500 GW of non-fossil fuel capacity by 2030. (ANI)

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