The report, India’s Renewable Energy Policy Headwinds – Recommendations for Urgently Accelerating Activity in the Renewable Energy Sector, finds a number of recent policy positions that have undermined growth in this sector.
India’s renewable energy sector requires $500 billion to $700 billion of new investment by 2030 to meet its massive target of 450 gigawatt (GW) capacity, according to the Institute for Energy Economics and Financial Analysis (IEEFA).
The Parliamentary Standing Committee on Energy has pulled up the Ministry of New and Renewable Energy (MNRE) for failing to meet the targets for capacity addition over years. The failure could hamper the efforts at meeting the larger national target of reaching 175 Gigawatt (GW) capacity by 2022, it has said.
The ministry could achieve only 11,319 Megawatt (Mw) of grid-connected RE capacity addition against a target of 16,560 Mw in 2016-17. It managed to achieve only 11,876 Mw of the targeted 14,445 Mw in 2017-18. Similarly, during 2018-19, only 8,519 Mw could be installed against the target of 15,355 Mw, a shortfall of 44.50 per cent.
Following the Union Budget announcement that photovoltaic (PV) cells and modules would now incur customs duty, the Ministry of New and Renewable Energy (MNRE) clarified that the effective basic custom duty would be zero. The Budget had a provision that levied a 20 per cent basic customs duty on PV cells and modules.
A notice issued by the MNRE also asked solar manufacturers to list items they would like to be exempted from the list.
Although the MMDR law will support iron ore output growth, the royalties included in the Act will limit the overall growth potential of the sector, Fitch Solutions said.
The government last month promulgated an ordinance for amendment in the MMDR Act 1957 and the CMSP (Coal Mines (Special Provisions) Act, 2015, a move aimed at enhancing the ease of doing business, among others.