Experts from the energy industry lauded the governments’ decision on expanding the PM-KUSUM scheme and a proposal to allocate about Rs 22,000 crore to power and renewable energy sector in 2020-21, saying the step will help generate employment opportunities and give a boost to the agriculture sector.
While presenting the budget for 2020-21, Finance Minister Nirmala Sitharaman on Saturday announced expansion of Pradhan Mantri Kisan Urja Suraksha Utthan Mahabhiyan (PM KUSUM) Scheme under which 20 lakh farmers would be provided funds to set up standalone solar pumps.
While presenting the budget for 2020-21, the minister said that farmers would be provided funds to set up grid-connected 15 lakh solar pumps.
In her budget speech, she also proposed an outlay of Rs 22,000 crore for power and renewable energy sector for 2020-21.
Imaan Javan, the director of operations at Suntuity Renewable Energy India, “We welcome the decision which reflects the union government’s commitment and concern for renewable energy generation. One of the heartening features of the Union budget is its provision for the use of renewable energy sector of Rs 22,000 crore.”
Sitharaman deserves praise for this innovative measure which will widen the scope of the PM-KUSUM scheme and enable farmers to set up grid-connected solar power generation capacity on barren land and renewable energy sector as a way to address pollution and climate change, poverty and give the farmers their livelihood.”
The industry hope the measures will give boost to the agriculture sector, and help generate employment as well in rural India, he said.
Nikunj Ghodawat, Chief Financial Officer, CleanMax opines for the renewable energy sector, the extension of the 15 per cent and 22 per cent tax rate to the new and existing power generation companies, which was earlier only earmarked for the manufacturing sector, is a welcome move.
The new personal income tax structure should help to increase liquidity at the hands of the individuals, which will have a trickle-down effect to boost demand and consumption across multiple sectors, he said.