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The new policy for development of hydropower will be ready for the Cabinet nod in a few days, according to the Minister of State (Independent Charge), R K Singh.
Speaking at the Assocham Round Table Discussion on Hydropower in India, Singh said, “The policy is in the final stages and we will be taking it for Cabinet approval in a few days…There is a suggestion with the Ministry of Power to increase the loan period and this itself will make hydropower much cheaper.”
At the roundtable, Assocham members urged the Centre to fix the Goods and Services Tax (GST) rates for hydropower on par with wind and solar so that value-added cost and tax are commensurate for all renewable power projects.
“Hydro projects attract 18 per cent GST for equipment and 28 per cent for cemen, while the same for solar is made five per cent. Engineering, procurement and construction (EPC), which has a glaring additional cost, impact on power produced from hydro projects,” an Assocham statement said.
EPC contracts for hydro should also be categorised under five per cent GST, the statement added.
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