Solar Equipment Manufacturers to Benefit from FY23 Budget
New Delhi, February 5 (IANS): Domestic solar equipment manufacturers stand to benefit from the Union budget proposals for FY23.
In a report, HDFC Securities pointed out that proposals such as an additional financial allocation under the Production Linked Incentive Scheme (PLI) for solar module manufacturing in India will boost the sector.
As a result, firms Tata Power, L&T, Adani Enterprises and Coal India, which are planning to implement solar PV modules, stand to benefit from the move, the brokerage said.
Notably, to facilitate domestic manufacturing to meet the ambitious target of 280 GW of installed solar capacity by 2030, an additional allocation of Rs 19,500 crore has been made in the budget for the PLI scheme for module manufacturing. high efficiency, with a focus on fully integrated manufacturing. polysilicon units to solar photovoltaic modules was made within the budget.
Another proposal to replace the existing safeguard duty with a basic tariff on solar cells from 20% to 25% and on solar modules from 20% to 40% should help the industry.
“The significant increase in the domestic solar cell and module manufacturing industry will help compete with cheaper imported solar equipment suppliers.”
“Positive for domestic solar cell and solar module manufacturers like Tata Power, Adani Enterprises, L&T, Coal India, etc.”
In addition, the proposal to issue green bonds to mobilize resources for the establishment of green infrastructure projects in the public sector will further support the sector.
In addition, the budget provided for giving infrastructure status to energy storage systems, including grid-scale battery systems.
“Access to cheaper long-term finance for financing infrastructure projects in renewable and clean energy projects.”