India plans to add around 300 GW of renewable energy capacity by 2030

GST reduction on renewable energy will save up to Rs 1.5 lakh crore for investors till 2030, Union Minister Pralhad Joshi said on Monday.

The comments from the Union New & Renewable Energy Minister assume significance as Monday is the first day of implementation of the Goods and Services Tax reduction.

In a bonanza to consumers, the GST Council, comprising the Centre and states, decided to reduce tax rates on goods and services, from September 22 -- the first day of Navratri.

The GST cut will give a significant boost to India's ambitious target of having 500 GW of renewable energy by 2030.

Talking to reporters on the sidelines of the CII 6th International Energy Conference, Joshi said, "I thank Prime Minister Narendra Modi for cutting GST on renewable equipment from 18 per cent to 5 per cent, especially on the occasion of the Navratri festival." He further said this will save Rs one lakh crore to Rs 1.5 lakh crore for investors till 2030.

According to the Ministry of New & Renewable Energy, given that India plans to add around 300 GW of renewable energy capacity by 2030, even a modest 2-3 per cent cost reduction can free up Rs 1-1.5 lakh crore in investment capacity.

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