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PLI, ALMM expansion, and EV tax cuts: What industry expects from Budget 2025?
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New Delhi: As India prepares for Union Budget 2025, industry leaders from renewable energy, infrastructure, electric mobility, chemicals, and industrial sectors have shared their expectations, calling for tax incentives, policy reforms, and increased financial support. With the government targeting 500 GW of non-fossil fuel energy by 2030 and aiming for Viksit Bharat 2047, stakeholders seek PLI scheme expansion, ALMM inclusion, GST rationalization, and enhanced R&D incentives.
With rising global energy prices, supply chain disruptions, and policy shifts in the U.S. and China, industry leaders emphasize investment in clean energy, EVs, grid infrastructure, and local manufacturing to reduce dependence on imports and improve economic resilience.
Solar industry calls for PLI expansion, ALMM inclusion, and export incentives
Dr. Amit Paithankar, Whole-Time Director & CEO, Waaree Energies Ltd, highlighted the ₹19,500 crore allocation for solar energy in the previous budget and called for continued support.
"Last year’s Union Budget laid a strong foundation for India’s solar PV module manufacturing ecosystem. Expanding the PLI scheme will empower domestic players to scale their manufacturing capacities and accelerate progress toward achieving 500 GW renewable power by 2030," he said.
He also advocated for Approved List of Models and Manufacturers (ALMM) expansion to include ingots and wafers, enabling comprehensive backward integration.
"Anti-Dumping Duties (ADD) should be implemented gradually to avoid short-term price fluctuations while ensuring long-term domestic manufacturing growth," he added.
Paithankar also proposed increasing export subsidies from 1% to 5% for the renewable energy sector and introducing tax benefits for R&D investments to improve innovation and global competitiveness.
Solar developers seek streamlined approvals, net metering, and open access reforms
Nishant Sood, Managing Director, Candi Solar, stressed the need for simplified land acquisition, regulatory approvals, and open access policies.
"Introducing subsidies, tax rebates, and accelerated depreciation will make solar energy more affordable for C&I businesses, driving economic and environmental progress," he said.
Sood also urged the government to bring electricity under the GST framework and enable input tax credits to reduce costs and attract more investments.
Battery storage and transmission infrastructure essential for 500 GW target
Capt. Ishver Dholakiya, Managing Director & Founder, Goldi Solar, emphasized the need for Battery Energy Storage Systems (BESS) and transmission infrastructure investments to support grid stability.
"Reducing GST on renewable equipment, expanding the ‘Green Credit Program,’ and increasing R&D funding for solar technologies are crucial," he said.
Dholakiya also stressed the importance of public-private partnerships to strengthen India’s grid infrastructure.
Compressed Biogas (CBG) sector calls for subsidies, GST exemptions, and national biogas grid
Mahesh Girdhar, MD & CEO, EverEnviro Resource Management Pvt Ltd, urged the government to introduce a phased construction-linked subsidy scheme to ensure cash flow for CBG producers.
"Removing customs duties on imported equipment and introducing low-interest financing at 5% will significantly reduce capital costs," he said.
He also recommended GST exemptions for the first two years, subsidies for organic fertilizers from CBG plants, and mandatory offtake by national fertilizer companies.
Industrial and infrastructure sectors demand GST rationalization and R&D incentives
Sanjay Choudhari, Chairman, SBL Energy, called for import duty rationalization on ammonium nitrate to support industrial explosives used in mining and infrastructure projects.
"Encouraging innovation in eco-friendly explosives technologies through targeted R&D incentives will help the sector align with environmental goals," he said.
Chemical industry pushes for duty reforms, PCPIR expansion, and skill development
Anand V S, Managing Director, NOCIL Limited, urged the government to address inverted duty structures and expand Petroleum, Chemicals, and Petrochemicals Investment Regions (PCPIRs) to attract global investments.
"Prioritizing skill development and incentivizing investment in sustainable chemical practices will enhance industry growth," he said.
Wind Energy Sector Seeks Faster Approvals and Domestic Manufacturing Support
Girish Tanti, Vice Chairman, Suzlon Group, highlighted India’s 1 TW wind power potential, noting that only 4% has been tapped so far.
"Wind power installations have reached 48 GW and are on track to cross 100 GW by 2030. A harmonized growth strategy across all renewable sources is critical to achieving India’s 500 GW target," he said.
EV sector calls for GST reduction on batteries, charging infra, and domestic production boost
Ankit Sharma, CEO & Co-Founder, Vidyuta, stressed the urgency of strengthening lithium-ion battery manufacturing to reduce India’s dependence on Chinese imports.
"China’s proposed restrictions on LFP and LMFP battery technologies pose supply chain risks. Strengthening domestic production is crucial," he said.
He urged the government to reduce GST on lithium-ion batteries and EV charging infrastructure from 18% to 5%, aligning it with electric vehicle GST rates.
"Reducing GST on batteries alone could make EVs 10-15% more affordable," he added.
Sharma also proposed modifications to the PLI scheme to support startups and expanding the FAME scheme for sustained funding.
Real Estate and construction industry calls for GST reforms and accessibility incentives
Aman Moudgil, Director, Gilco Global, suggested GST reductions on construction materials and financing options for residential elevators.
"Introducing tax benefits and GST concessions for elevators meant for paraplegics and elderly individuals would enhance accessibility," he said.
Cement Industry Urges GST Reduction and Faster Approvals
Arun Shukla, President & Director, JK Lakshmi Cement Ltd, recommended reducing GST on cement from 28% to 18% to support the ‘Housing for All’ initiative.
"Expediting project approvals and reducing logistics costs will help the cement industry support India’s infrastructure growth," he said.
Bioenergy sector seeks tax benefits and investment incentives
Varun Puri, Managing Director, Green Power International, emphasized the need for bioenergy incentives to tackle pollution and support energy security.
"Policy measures should include subsidies for bioenergy plants, tax benefits for clean energy technologies, and financial support for importing advanced energy equipment," he said.
Energy sector calls for R&D investments and grid modernization
Sanjay Gupta, CEO, Apollo Green Energy Limited, called for long-term investments in renewable and traditional energy sources.
"Funds should be allocated for R&D in emission reduction, energy efficiency, and grid stabilization," he said.
Conclusion
Industry leaders from renewable energy, EVs, infrastructure, chemicals, and bioenergy sectors have outlined key expectations for Union Budget 2025, focusing on tax incentives, financing mechanisms, and policy reforms. With India targeting 500 GW of clean energy by 2030, stakeholders emphasize the need for PLI expansion, GST rationalization, R&D funding, and streamlined regulatory processes to drive sustainable economic growth.
- Published On Jan 29, 2025 at 08:50 AM IST
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January 29, 2025 at 05:04AM