Union Budget 2019 Review for Solar Industry: Slow But In The Right Direction
lubi solar       July 30, 2019
The union budget presented by the FM has come as a dampener to the spirits of the renewable energy sector.
The industry had been anticipating a impetus boost by the government policy machinery to squeeze out the hurdles in financing and drive growth in the segment to achieve the lofty targets.
However the solar segment has seen a raise of mere 1.1% this fiscal, raising questions about the policy makers resolve in pushing for target achievement.
On the manufacturing front though, the government is working towards getting mega manufacturing plants in the sunrise and advanced technology areas like semiconductor fabrication. According to the industry experts, such a move by the government backed by duty reductions can provide a major filip to the renewable energy sector.
The industry had sought for long, a policy direction to promote local manufacturing through the ‘Make in India” programme and this encouragement to companies through competitive bidding may well be a step in the directions reducing dependence on imports for key inputs.
Also a 70,000 Cr. infusion of funds into the PSB’s shall boost the NBFC which in the absence of recognized financial support from the government may provide impetus to solar project financing.
So optimistically, the policy shift may well help solving teething issues incumbent in the industry. However the industry may require some support in the form of soft loans and export credits to compete globally.
So overall, from the solar sectors perspective the budget budget may not be as gloomy as it appears.