Cut priority sector lending limit for renewable sector

Mr. Nikunj Ghodawat, Chief Financial Officer, CleanMax Solar

The Indian renewable industry is the third largest in the world after China and USA. With such an exponential growth rate, we are hoping that in the upcoming budget, the Government will continue to focus on reducing cost of capital for speedy development of the sector. The formalization of the Power Ministry's recommendation to the RBI to categorize renewable energy into a separate segment from power, and remove priority sector lending limit for the sector to ensure higher credit financing availability will give a much needed boost to the sector.

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Additionally, with the consistent reduction of Repo Rate, we hope that the benefit are passed on to the borrowers, in the budget Govt should announce measures on reducing the real interest rate. In the 1st term of NDA govt, it had announced a plan to reduce the corporate tax rate from 30% to 25%, we would like to see this announcement in the budget to get aligned with global tax rates.

The author is the Chief Financial Officer of CleanMax Solar.