The provisions in Budget 2020 received a positive response from the power sector with the industry largely applauding the big push for renewables and rural economy through solar power and the emphasis on smart metering to ease out discom woes.
Talking to ETEnergyworld, industry players gave a thumbs up to the announcements on lower corporate tax for new energy companies, extension for PM Kusum scheme, allowing farmers to utilise their barren land for renewable energy generation, the proposal for setting up large solar power capacity along railway tracks and the focus on ensuring smart prepaid metering over the next 3 years.
Sumant Sinha, Chairman and Managing Director of India’s largest private renewable energy company ReNew Power said the announcement to bring new energy companies under the lower corporate tax rate is expected to encourage investments. “Similarly measures to strengthen the Contract Act to improve financial condition of distribution companies, allowing farmers to utilise their land for renewable energy generation and an increased outlay for clean air in cities will provide further impetus to clean energy,” he said.
He also said while there was pressure on the government to move away from fiscal responsibility, it has chosen to walk a middle path allowing an acceptable increase in fiscal deficit while putting some extra money in the hands of tax payers.
Ashish Khanna, Managing Director & Chief Executive Officer, Tata Power Solar and President, Tata Power Renewables said the budget allocations are in the direction of supporting renewables and the focus on KUSUM scheme is a positive step which will help farmers improve livelihood through solar pumps.
However, Gagan Vermani, Founder & CEO of solar rooftop company MYSUN said the budget was a mixed bag for the solar sector.