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The green energy sector is witnessing a paradigm shift, driven by strategic government initiatives and innovative financial instruments. The Production Linked Incentive (PLI) schemes aim to boost domestic manufacturing and create a competitive edge for Indian companies in the coming years. This initiative alone could create numerous jobs and drive technological innovation.
We hope that the government will revise the GST rates for renewable energy components, reducing it to 5% (from current 18 %), thereby significantly lowering the cost structure for green energy projects. This will also increase the affordability and attractiveness of renewable energy investments, promoting faster adoption across the country.
Higher capital expenditure, evidenced by the government's plan to invest over $360 billion in renewable energy infrastructure by 2030, highlights the commitment to expanding the country’s renewable energy mix and enhancing grid capabilities. Moreover, lower interest rates have facilitated more accessible financing options, helping in decreasing the cost of capital and making large-scale renewable projects more viable.
Green bonds have emerged as a powerful tool, with India issuing over $21 billion in green bonds as of February 2023. These bonds are crucial for financing environmentally sustainable projects, aligning investor interests with the global push towards a low-carbon economy.
Together, these measures will create a robust and supportive environment for the renewable energy sector, positioning India as a global leader in sustainable energy solutions and driving us closer to our goal of a resilient, green future.
