Solar power equipment manufactures express concern over GST

Hyderabad, Sep 1 (PTI) Manufacturers of solarequipment have raised concern over the possible costescalation of power projects and subsequent higher tariffsburden on consumers once the Goods and Service Tax (GST) isimplemented. "Currently the sector enjoys almost zero tax structurein most of the states with VAT reimbursement by the stategovernments and other tax relaxation on solar power plants,"said Surender Pal Singh, Chairman, Solar Energy EquipmentManufacturers’ Association of Telangana. "Once GST comes into the picture, if Indianmanufacturers are subjected to that, then we will be in greatdisadvantageous position when compared to China and Taiwan.That would subsequently escalate the cost of the project by 10to 15 per cent and ultimately burden the consumers," he toldreporters here. The All India Solar Manufacturers’ Association hasalready submitted a memorandum to Finance and CommerceMinisters, among others, to have a soft view on the buddingsector, Singh informed. According to him, the current rate is about Rs 5 perunit. Replying to a query, Singh said India currently hasinstalled capacity of solar power 8.1 GW and during thecurrent fiscal it may go up to 15 GW both ground and rooftop. He said financial institutions including banks chargeat par with other industries though the solar industry asclassified as special category. "The mindset of banks on solar industry is not stillclear. They are still hesitant when it comes to lending," hesaid. Meanwhile, UBM India, an exhibition organiser, said itis hosting the 10th edition of its Renewable Energy India Expofrom September 7-9, 2016 at Greater Noida. PTI GDK NRB ABIBAS