PLI schemes for green hydrogen electrolysers should be announced in budget: Sumant Sinha

The clean energy industry is hopeful that Finance Minister Nirmala Sitharaman will announce Production-Linked Incentive (PLI) schemes for green hydrogen electrolysers as well as utility-scale batteries from the Union Budget 2023-24—which will be presented on February 1, 2023, said ReNew Power Chairman and Chief Executive Officer Sumant Sinha.

Sinha, who is also the President of the Associated Chambers of Commerce & Industry of India (ASSOCHAM), said that the government should also increase the outlay for solar power equipment manufacturing given the high number of likely bidders for it. In the last year’s budget, the government announced an allocation of Rs 19,500 crore for the PLI scheme for solar manufacturing.

Suggesting another measure for the renewable sector, he said that the government should ensure that duties on Goods and Service Tax (GST), as well as customs duties on batteries for utility-scale storage, are brought down from the current levels of around 30 percent in aggregate to 10 percent to be in line with batteries for electric vehicles.

He also recommended some kind of viability gap funding or allocation for the offshore wind sector.

In its pre-Budget recommendations, ASSOCHAM said the government should increase the exemption limit for income tax to at least Rs 5 lakh so that more disposable income is left in the hands of consumers.

"Boosting consumption by leaving more money in the hands of the consumers, is a low-hanging fruit for a further recovery in economic growth," said Mr. Deepak Sood, Secretary General ASSOCHAM.

Other recommendations from ASSOCHAM include an extension of a 15% corporate tax rate for new investments in manufacturing to all sectors, including services, a reduction in interest for late payment of the GST to 12 percent from 18 percent, and making investments in green industries.