What do Solar Photovoltaic Ind expect from Budget 08?

Pre-Union Budget Suggestions for the Solar Photovoltaic Industry in India by Mr. Hitesh Shah , Managing Director, Euro Multivision Ltd .

"Even though the Indian market for renewable energy, especially solar, is in a nascent stage, there are several options and ways to give impetus to the same. India has a long way to go before strong players make an impact on the solar photovoltaic market and the consumers. The existing and new players as well as the government could make further progress by taking positive steps to actively stimulate the market."

Expectations from Budget 2008-2009 

• Besides offering subsidy on solar related products, the Government should increase awareness by offering training on PV technology, PV system designs and related fields.

• The programme of Government of India should comprise promoting use of PV technology to provide lighting in villages, in the form of Community lighting systems, Portable solar lanterns, Street lights, Fixed home lighting systems, Water Pumping.
• Reliefs by government to SPV manufacturers and users of SPV based products should be in the form of:

·         100% depreciation in the first year of installation of the systems.

·         Benefits in the form of various tax exemptions for manufacturers and users.

·         In order to boost for the renewable energy especially solar energy, the capital subsidy / reimbursement for the installation of the solar panels should be given.

·         For every manufacturing industry, certain amount of power requirement should be made compulsorily met by captive generation.

·         Incentives for Solar farming should be given.

·         The limit of Rs. 1,000 crore investments in Photovoltaic industry for eligibility of capital subsidy should be reduced to Rs. 500 crore.

·         Budget allocation should be made for Govt. Investment in power generation through solar technology.

·         A reserve should be created for the research and development in photovoltaic industry like in US.

·         No import tariff for several imported machineries, raw materials and components

·         Soft loans to users, intermediaries and manufacturers.

·         Create a suitable legal environment that enables and simplifies innovation and entry of solar related projects.

·         Set challenging but realistic access goals that incorporate important reform milestones and depict overall development in the solar sector.

·         Institutional reforms and strong focus on implementing agencies so that they are sufficiently independent, decentralized, accountable and have strong leadership.

·         Regulatory reforms that promote innovation and allow entry of alternative service providers including the private sector.

·         Improve in hesitancy of banks and financial institutions for granting of Working Capital for Start-Up Entrepreneurs

·         Money for creating innovative schemes is required in the case of solar photovoltaic. Consumer financing for solar PV business in general and entrepreneurs in particular.