Union Budget: Renewable energy sector seeks reduction in customs duty on batteries

India stands poised at the brink of a renewables revolution, harnessing the power of its abundant solar and wind resources to lead a sustainable future, said Sumant Sinha, Chairman & CEO, ReNew. 

Speaking with Republic Business, Sinha, who is a senior member at the Confederation of Indian Industries (CII) said in order to tap its full potential, it is crucial to strengthen the manufacturing ecosystem for clean energy components, provide robust financing support to new technologies, establish new trade agreements with key global regions, and capitalize on the opportunity for India to become a global hub for RE technology, green hydrogen and related services.

“With the upcoming budget, we request the government to prioritise three measures – a package of production and export promotion incentives to our export-oriented sectors like green hydrogen and solar components manufacturing,” added Sinha, who is also a co-chair at the World Economic Forum.  

Sinha also focussed on the launch of a new Carbon Mission to synergise country’s current efforts, and classification of renewable energy projects with a capacity of more than 50 MW as projects of national importance under the PM Gati Shakti. 

“Furthermore, we request for a uniform GST rate of 5 per cent on battery Energy Storage Systems (BESS) and related components and a reduction in customs duty on batteries for utility storage purposes,” added Sinha.  These measures will significantly support the growth of the renewable energy sector in the country, the senior CII member added. 

“The industry is committed to supporting the government in achieving these goals, driving India's growth, and establishing the country as a leader in renewable energy. With bold initiatives and innovation, India is sure to transform into a global leader in clean energy,” further added Sinha.