Karnataka Government’s full VAT exemption for manufacture of solar equipment has begun to draw interest from several solar part makers.

“VAT exemption for solar equipment, with the available input credit, is a very encouraging move by the government,” S Sampathraman, President, FKCCI, told BusinessLine . The VAT rate is usually between 8 per cent and 9 per cent.

In addition to VAT exemption, the State has also announced a plan to set up 300-MW solar power plant on waste farm lands, which has attracted equipment manufactures as well.

Confirming the development, Ajit Kiran, Partner, Anant solar systems, said: “Currently, manufacturing is limited in the state. But after the government’s tax sops, there has been renewed activity in assembling/system integration in the renewable energy sector.”

Wheeling and banking is also exempted in the State for solar power trade. Power supplied by them to the grid will be purchased by the State government at ₹8.40 per unit, which will be a major benefit for farmers and power producers.

Similarly, installation of roof top systems has been encouraged tremendously through net metering. Net excess supplies to the grid will be paid by the government at ₹9.56 per unit.

Green summit With an aim to make Karnataka a renewable energy hub, FKCCI is holding its three-day Global Renewable Energy Summit (Green Summit) on Thursday.

The meet is supported by the Ministry of New and Renewable Energy, and both State and Union governments.

Sampathraman said: “This year we will showcase business and transformational opportunities in renewable energy across all segments in Karnataka.” There will be 100 stalls and 500 delegates showcasing in the exhibition on renewable energy sector.”

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