Solar & EV Sector Highlights in Union Budget 2021

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Union Finance Minister Nirmala Sitharaman delivered her third Budget in Lok Sabha today. There where no changes in personal income tax slabs and a slew of hikes in customs duty to benefit Make in India, the Budget focussed on the Centre’s Atmanirbhar Bharat vision. Budget speech, announced promoting clean energy initiatives as the Government of India’s commitment to combating climate change.

We are raising duties on imported solar inverters from 5% to 20% and on solar lanterns from 5% to 15% to support domestic manufacturing in the solar sector, said the Minister. Most of the projects on ground so far in India are based on imports and the news has come as a shock to the industry. Also it further discourages the potential investment in solar sector.

The Government has also announced an additional allocation of Rs 1000 crore for SECI, and Rs 1500 crore for IREDA. As per the indusrty the benefit to the private players is the matter of concern.

In a bid to end monopoly of power distribution, the government will create a framework to allow consumers of electricity alternatives to choose from more than one distribution company.

A comprehensive National Hydrogen Mission is being launched for generating hydrogen from green power sources. This is a key move, as it finally tries to create a major demand generator for renewable energy, for production of green hydrogen.

On New voluntary scrappage policy Union Finance Minister announces new voluntary scrappage policy to phase out old vehicles. The details would be unveiled later. The scrappage policy has been long awaited by the automotive industry. Tamil Nadu being a big market for both commercial vehicle and personal vehicles is likely to benefit.

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