GST cut to reduce farmers' solar pump costs by ₹1,750 cr annually: Joshi

Pralhad Joshi said GST rationalisation on renewable energy devices will lower solar pump costs for farmers by Rs 1,750 crore annually under schemes like PM-KUSUM

Minister for New and Renewable Energy Pralhad Joshi on Friday said the recent rationalisation of Goods and Services Tax (GST) rates will help farmers as the cost of procuring solar pumps will reduce by ₹1,750 crore annually under flagship schemes like PM-KUSUM.

The government recently reduced GST on renewable energy devices such as electrolysers used for production of green hydrogen to 5 per cent from the existing 18 per cent.

 

“These reforms make solar projects such as the PM Surya Ghar and PM-KUSUM more affordable for citizens and farmers. GST cuts are reducing solar pump costs for farmers by ₹1,750 crore and rooftop solar system costs by ₹9,000 to ₹10,500 per unit, while also strengthening India’s renewable energy equipment landscape,” Joshi said. 

 

Speaking at an event in Mumbai, the minister also said India should aim to export 50 million tonnes (MT) of green steel by 2030. He said India’s plan of ramping up exports needs to be backed by green steel as several countries are introducing carbon tax. 

 

“The Indian government is targeting 300 MT of steel production capacity by 2030. Green steel production is now possible, and it is possible at scale. The Indian government is ready to provide policy support,” he said. Green steel is the production of the metal without the use of fossil fuels such as coal to reduce greenhouse gas emissions. The government is pushing the use of renewable sources of energy such as solar, green hydrogen to achieve its net-zero targets by 2070.

 

Joshi said the government aims to bring down the price of green hydrogen to less than $2 per kg. The government announced financial support of ₹100 crore for start-ups engaged in green hydrogen research and development (R&D), with a maximum of ₹5 crore per project, to support the sector.