According to reports, with renewables tariff already touching new lows, Power Minister Piyush Goyal today said there was no need for lower taxes to encourage clean energy and the GSTregime will have no impact on power rates. However, the minister is hopeful that lower GST rate of 5 per cent on coal, compared to existing 11.69 per cent, would help discoms provide power at affordable rates.
“We don’t need support of lower taxes to encourage renewable energy. By itself, it is good for the nation. It reduces pollution. It give discoms 25-year long affordable power at prices which are even below grid (parity price),” Goyal told reporters when asked if the new Goods and Services Tax rates would impact clean energy in India.
Yesterday the GST Council had finalised the rates on various products including renewable energy equipment which has been kept in the 5 per cent slab.
Solar power tariff dropped to all-time low of Rs 2.44 per unit which is below the grid parity price. Similarly under the wind power auction for 1GW, the tariff dipped to Rs 3.46 per unit. The new rates of solar power discovered in the auctions are even below the average rate of coal-based power produced by NTPC at Rs 3.20 per unit.