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GST on hydropower should be on par with wind, solar: Assocham
New Delhi, Nov 30 (IANS) The GST rates for hydropower should be brought at par with wind and solar, so that value added cost and tax are commensurate for all renewable power projects, industry chamber Assocham said on Thursday.
This, among other suggestions, to revive the languishing hydropower sector in the country have been made in an Assocham paper titled “Need for Hydropower in India – Industry Submission”, which was released by Union Power and New and Renewable Energy Minister R.K. Singh here on Wednesday evening.
“Assocham has urged the Centre to fix Goods and Services Tax (GST) rates for hydropower at par with wind and solar, so that value added cost and tax are commensurate for all renewable power projects,” the industry body said in a statement.
“Hydro projects attract 18 per cent GST for equipment and 28 per cent for cement, while the same for solar is five per cent for Engineering, Procurement and Construction (EPC), which has a glaring additional cost impact on power produced from hydro projects,” noted the Assocham paper.
Besides, EPC contracts for hydropower projects should also be categorised under the lowest GST slab of 5 per cent, it said.
“Currently, electricity at the consumer end or at discom end does not attract any GST and therefore the last leg of consumption of GST is with the generator,” Assocham said.
Releasing the Assocham paper, the Power Minister said a draft hydro power policy is being finalised for being placed before the Union Cabinet.
“A sector which has failed to add even 2,500MW of capacity in the last five years is in urgent need of revival, given that only hydro power can help balance the grid in absorbing the much higher levels of renewable energy planned to be progressively introduced by the government,” Singh said at Assocham’s roundtable with stakeholders.
“The 175 gigawatt (GW) capacity target from renewable sources is given and is part of our international obligations (on climate change). To balance the grid, it needs balancing power and for that hydro fits the bill,” he said.
He noted that hydroelectric power did not have to be imported, unlike gas, which could also perform the grid balancing function.
“We have a policy in the works for hydropower development which will be placed shortly before the Cabinet for approval. States are interested in its development and it is necessary for our future,” the minister said referring to the environmental benefits of hydroelectricity.
“Renewables go with hydro for grid purposes also because the costs of solar and wind power have become quite cheap,” he added.
Multipurpose projects, which were at the centre of India’s development strategy post-Independence, have become unviable because of revenue issues and the sector is saddled with a large share of stalled projects and stressed assets.
Singh said that the ministry had received various suggestions from stakeholders on a scheme of financial incentives.
“Some of these suggestions spoke of increasing the period of loan as well as the depreciation period, which would help reduce the tariff,” he said.
The Assocham paper suggested that government should support commissioned and under-construction projects through power purchase agreements (PPAs) and by mandating hydro purchase obligations (HPOs).
It also recommended that states waive the current free power requirement which would help reduce tariff in the initial years and make the project “more viable and competitive”.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.
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