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					</table><p><a href="https://www.mercomindia.com/india-2024-budget" target="_blank" rel="noopener"><strong>Union Finance Minister Nirmala Sitharaman, in the first Budget under a new coalition government</strong></a>, laid out a series of measures to promote clean energy adoption and develop critical mineral supply chains. She highlighted &#8216;Energy Security&#8217; as one of the nine pillars for Budget 2024. The allocation for the solar sector has surged by 75% from the previous year’s revised estimate, now set at ₹86.49 billion (~$1.03 billion). However, the wind energy sector allocation has decreased by 12.7% to ₹8 billion (~$95.6 million).</p>
<p><strong><a href="https://www.mercomindia.com/dvc-invites-bids-for-projects-in-west-bengal-jharkhand" target="_blank" rel="noopener">Damodar Valley Corporation (DVC) has invited bids for the design, engineering, supply, erection, and commissioning</a></strong> of 10 MW grid-connected rooftop solar power systems, including comprehensive operation and maintenance for five years in DVC-owned buildings in West Bengal and Jharkhand. The last date for submitting bids is July 31, 2024. Bids will be opened on August 1. The scope of the work should include the installation, testing, and commissioning of rooftop solar systems. The estimated project cost, earnest money deposit, and tender document cost will be announced later.</p>
<p><a href="https://www.mercomindia.com/jakson-green-credit-facility-first-abu-dhabi-bank" target="_blank" rel="noopener"><strong>Jakson Green, the renewable energy arm of the Jakson Group, has secured a ₹2.96 billion (~$35.36 million) credit facility from First Abu Dhabi Bank (Mumbai)</strong></a> to support its international expansion, starting with a solar photovoltaic and battery storage project in Uzbekistan. The project involves building and operating a 250 MW solar power facility combined with a 63 MW/126 MWh battery energy storage system in Bukhara. This credit facility marks a significant milestone for Jakson Green’s entry into Uzbekistan’s renewable energy market as the company continues to expand its presence in the Middle East, Africa, the Commonwealth of Independent States, and Europe.</p>
<p><a href="https://www.mercomindia.com/jsw-energy-q1-profit-surges" target="_blank" rel="noopener"><strong>Independent power producer JSW Energy reported an 80% year-on-year surge in net profit for the first quarter of fiscal year 2025</strong></a>, reaching ₹5.22 billion (~$63.3 million), helped by higher power generation across its portfolio and improved operational efficiencies. Total net generation for the quarter increased by 18% to 7,881 million units (MUs), compared to 6,699 MUs in the same period last year. This growth was powered by a 44% rise in renewable energy generation, which reached 3,242 MUs. The company’s thermal power generation also saw an uptick of 4%, contributing 4,638 MUs to the total output.</p>
<p><a href="https://www.mercomindia.com/suzlons-q1-2025-net-profit" target="_blank" rel="noopener"><strong>Wind turbine manufacturer Suzlon Energy recorded a net revenue of ₹20.16 billion (~$241.02 million) during the first quarter of 2025</strong></a>, a year-over-year (YoY) increase of 50% as compared to ₹13.48 billion (~$161.16 million). The company posted a net profit of ₹3.02 billion (~$36.1 million), a 200% YoY increase from ₹1.01 billion (~$12.07 million). Suzlon’s earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at ₹3.7 billion (~$44.23 million), a YoY increase of 86%, from ₹1.99 billion (~$23.79 million). This is Suzlon’s highest quarterly EBITDA in seven years.</p>
<p><a href="https://www.mercomindia.com/gcf-approves-215-6-million-for-sidbi" target="_blank" rel="noopener"><strong>The Green Climate Fund has approved $215.6 million for the Small Industries Development Bank of India’s</strong></a> Financing Mitigation and Adaptation Projects (FMAP) in Indian micro, small, and medium enterprises (MSMEs). The projects aim to help MSMEs adopt low-emission and climate-resilient technologies. They will also increase climate finance for MSMEs by using private sector investments from non-banking financial companies, small finance banks, and microfinance institutions. These investments will provide loans to MSMEs to adopt various mitigation and adaptation technologies. The FMAP program is projected to reduce 35.3 million tons of greenhouse gas emissions and significant water savings.</p>


Daily News Wrap-Up: Budget 2024 Promotes Clean Energy, Critical Mineral Chains


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					</table><p><a href="https://www.mercomindia.com/budget-2024-free-electricity-rooftop-solar-vgf-offshore-wind" target="_blank" rel="noopener"><strong>Union Finance Minister Nirmala Sitharaman unveiled key measures during the presentation of the 2024 interim budget, signaling a significant push towards sustainable energy and electric mobility.</strong></a> One of the standout announcements involves providing up to 300 units of free electricity every month to 10 million households through rooftop solarization. This move aims not only to make clean energy accessible to a large segment of the population but also to encourage the widespread adoption of solar power.</p>
<p><a href="https://www.mercomindia.com/servotech-contract-deploy-1800-ev-chargers-bpcl" target="_blank" rel="noopener"><strong>Servotech Power Systems, an electric vehicle (EV) charger and energy efficiency products manufacturer has won an order for 1,800 DC Fast EV Chargers to be installed across India</strong></a> from government-owned oil and gas major Bharat Petroleum Corporation. The order is valued at ₹1.2 billion (~$14.46 million) and encompasses the installation and commissioning of two charger variants, 60 kW and 120 kW in the 70:30 ratio.</p>
<p><a href="https://www.mercomindia.com/sales-volume-amara-rajas-q3-profits-up-15" target="_blank" rel="noopener"><strong>Amara Raja Energy &amp; Mobility recorded a net profit of ₹2.55 billion (~$30.7 million) during the third quarter of the financial year 2024, a year-over-year (YoY) increase of 14.8%,</strong></a> primarily driven by the increased sales volumes of automotive batteries in both domestic and international markets. During the quarter, the company posted revenue of ₹30.68 billion (~$369.7 million), a YoY increase of 15% from ₹26.64 billion (~$321 million) fueled by the increased demand for lead-acid batteries.</p>
<p><a href="https://www.mercomindia.com/jabalpur-municipal-tender-for-10-mw-solar-projects" target="_blank" rel="noopener"><strong>The Municipal Corporation of Jabalpur has invited proposals from eligible consultants to set up 10 MW solar projects under captive/net metering mode to supply power to its high-tension connections.</strong></a> The last date for submitting bids is February 29, 2024. Bids will be opened on March 1. The corporation is responsible for supplying water to residents within its jurisdiction and operates multiple water pumping stations equipped with electrical connections at 132/33 or 11 kV Voltage. The corporation aims to transition to solar energy, within the existing regulations, to meet its electrical energy needs as much as possible.</p>
<p><a href="https://www.mercomindia.com/thdc-issues-floating-solar-park-in-karnataka" target="_blank" rel="noopener"><strong>THDC India has invited bids from consultants for the preparation of a detailed project report and bathymetric survey of a 100 MW floating solar power project at the Kadra Dam reservoir in Karnataka</strong></a>. The last date for submission of bids is September 15, 2024. Bids will be opened the next day. The study’s scope encompasses an in-depth project report, incorporating an evaluation of suitability, engineering surveys, cost estimates, and assessments of technical, economic, and financial viability for solar power projects.</p>


Daily News Wrap-Up: Budget 2024 Highlights


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					</table><p><a href="https://finmin.nic.in/" target="_blank" rel="noopener">Union Finance Minister</a> Nirmala Sitharaman unveiled key measures during the presentation of the 2024 interim budget, signaling a significant push towards sustainable energy and electric mobility.</p>
<p>One of the standout announcements involves providing up to 300 units of free electricity every month to 10 million households through rooftop solarization. This move aims not only to make clean energy accessible to a large segment of the population but also to encourage the widespread adoption of solar power.</p>
<p>The announcement follows the recent Pradhan Mantri Suryodaya Yojana initiative, which <a href="https://www.mercomindia.com/modi-announces-new-rooftop-solar-on-10-million-homes" target="_blank" rel="noopener">aims</a> to reduce the electricity expenditure of poor and middle-class households while enabling India’s self-reliance in the field of energy.</p>
<p>Sitharaman also said the program would lead to the accruing of multiple benefits, including savings of up to ₹15,000 ($180) -₹18,000 ($216) annually for households from free electricity and selling the surplus to the DISCOMs.</p>
<p>In a bid to harness the potential of offshore wind energy, the Finance Minister announced viability gap funding for offshore wind projects with a cumulative capacity of 1 GW. This financial support is expected to propel the development of offshore wind projects, contributing to India&#8217;s renewable energy goals.</p>
<p>The budget also saw revision of estimates for various programs such as solar power (on grid) from ₹49.7 billion (~$598.92 million) to ₹85 billion (~$1.02 billion), National Green Hydrogen Mission from ₹2.97 billion (~$35.79 million) to ₹6 billion (~$72.31 million), and Green Energy Corridor from ₹5 billion (~$60.26 million) to ₹6 billion (~$72.31 million).</p>
<p>The revisions, however reduced the budget estimate outlay for wind power (on grid) from ₹12.14 billion (~$146.3 million) to ₹8 billion (~$96.41 million) and Program for Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle in India &#8211; (FAME &#8211; India) from ₹51.72 billion (~$623.28 million) to ₹26.71 billion (~$321.88 million).</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/Budget-2024-25-Renewable-Energy-Programs-Outlay.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-62841 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/Budget-2024-25-Renewable-Energy-Programs-Outlay.png" alt="Budget 2024-25 Renewable Energy Programs Outlay" width="912" height="622" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/Budget-2024-25-Renewable-Energy-Programs-Outlay.png 912w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/Budget-2024-25-Renewable-Energy-Programs-Outlay-300x205.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/Budget-2024-25-Renewable-Energy-Programs-Outlay-768x524.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/Budget-2024-25-Renewable-Energy-Programs-Outlay-650x443.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/Budget-2024-25-Renewable-Energy-Programs-Outlay-624x426.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/Budget-2024-25-Renewable-Energy-Programs-Outlay-600x409.png 600w" sizes="(max-width: 912px) 100vw, 912px" /></a></p>
<p>The government is set to expand and fortify the electric vehicle ecosystem by providing support for manufacturing and charging infrastructure. The focus will be on promoting greater adoption of electric buses (e-buses) for public transport networks through the implementation of a robust payment security mechanism. This is expected to enhance public transport networks, contributing to a more sustainable and eco-friendly urban mobility landscape.</p>
<p>A noteworthy move towards sustainable fuel sources includes the mandatory blending of compressed biogas into compressed natural gas and piped natural gas for transportation. This initiative aligns with the government&#8217;s commitment to promoting cleaner and greener alternatives in the transportation sector.</p>
<p>The government is set to launch a Biomanufacturing and Bio Foundry Program, a pioneering initiative aimed at providing environmentally friendly alternatives for bio-degradable production. This program underscores the commitment to fostering sustainable practices and reducing the environmental impact of industrial processes.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.</p>
<p>&nbsp;</p>
<p>(The article updates with the budget outlay for major renewable energy programs)</p>


Budget 2024 Highlights: Free Electricity Via Rooftop Solar, VGF for Offshore Wind


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					</table><p><a href="https://www.mercomindia.com/solar-sector-hopes-budget-2024" target="_blank" rel="noopener"><strong>The solar industry stakeholders have a long wish list for the Union Budget 2024, which will be presented on February 1, 2024.</strong></a> Stakeholders hope Finance Minister Nirmala Sitharaman will announce tax and duty waivers for solar equipment to boost domestic solar manufacturing. Mercom spoke to a cross-section of industry stakeholders to understand their expectations from the budget. In the first nine months of 2023, India installed 5.6 GW of solar power capacity, marking a ~47% year-over-year (YoY) decrease from 10.5 GW.</p>
<p><a href="https://www.mercomindia.com/energy-storage-record-vc-funding-2023" target="_blank" rel="noopener"><strong>Global venture capital funding in the energy storage sector in 2023 reached $9.2 billion, a 59% YoY increase from $5.8 billion.</strong></a> The amount raised was the largest ever. The numbers were revealed in Mercom Capital Group’s newly released <a href="https://mercomcapital.com/product/annual-q4-2023-funding-ma-report-storage-grid/" target="_blank" rel="noopener">Annual and Q4 2023 Funding and M&amp;A Report for Storage &amp; Grid.</a> While the total funding rose, the number of deals dropped to 86 from 96.</p>
<p><a href="https://www.mercomindia.com/suzlons-q3-profit-up-160-yoy" target="_blank" rel="noopener"><strong>Wind turbine manufacturer Suzlon Energy recorded a total income ₹15.7 billion (~$189.04 million) during the third quarter (Q3) of the financial year (FY) 2024, an increase of 7% YoY from ₹14.64 billion (~$176.27).</strong></a> The company posted a net profit of ₹2.03 billion (~$24.44 million) during Q3 FY 2024, an increase of 160% YoY from ₹782.8 million (~$9.42 million). The increase in net profit can be attributed to the reduction in operating and other expenses during the quarter. The company reported a substantial 83% reduction in finance costs to ₹142.8 million (~$1.71 million).</p>
<p><a href="https://www.mercomindia.com/nhpc-invites-bids-for-wind-power" target="_blank" rel="noopener"><strong>NHPC Limited has invited bids to select developers for the supply of 1,200 MW of power from inter-state transmission system-connected wind power projects under Tranche 2.</strong></a> The last date for the submission of bids is February 28, 2024. Bids will be opened on March 4. A total capacity of 1,200 MW will be awarded for injection at ISTS substations in six states: Tamil Nadu (500 MW), Andhra Pradesh (250 MW), Maharashtra (200 MW), Telangana (100 MW), Madhya Pradesh (100 MW), and Karnataka (50 MW). Bidders have to pay ₹1.26 million (~$15,171)/MW as earnest money deposit.</p>
<p><a href="https://www.mercomindia.com/cleantech-for-open-access-solar-projects" target="_blank" rel="noopener"><strong>Cleantech Solar, a provider of solar energy for commercial &amp; industrial customers in India and Southeast Asia, has secured a long-term senior secured loan of ₹6.25 billion (~$75 million) from Tata Capital to expand open access solar projects across India.</strong></a> Cleantech said the funds will be used for the construction, development, and operation of its under-construction pipeline of open access solar and wind parks. These projects will provide renewable energy directly to corporate consumers under a long-term power purchase agreement.</p>
<p><a href="https://www.mercomindia.com/dcr-waiver-subsidy-kusum-continue" target="_blank" rel="noopener"><strong>The Ministry of New and Renewable Energy issued two clarifications on the guidelines for implementing the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program for feeder-level solarization (FLS).</strong></a> In the first clarification, the ministry confirmed that the waiver of the domestic content requirement for solar cells used for FLS under Component C of the PM-KUSUM program will stay in place until March 31, 2024. FLS plays a pivotal role in the program, which aims to solarize 1.5 million grid-connected agriculture pumps by March 31, 2026.</p>
<p><a href="https://www.mercomindia.com/polaris-wins-smart-meters-in-uttar-pradesh" target="_blank" rel="noopener"><strong>Polaris Smart Metering, a provider of advanced smart metering solutions, has won two contracts valued at over ₹52 billion (~$625.6 million) for the implementation of smart prepaid metering systems in Uttar Pradesh.</strong></a> The contracts, awarded by Madhyanchal Vidyut Vitran Nigam, involve installing more than 5.1 million smart meters in key clusters, including Lucknow and Ayodhya/Devipatan, over the next 27 months. Under the terms of the agreement, Polaris will supply, install, commission, and maintain smart meters across the consumer base in these clusters for the next decade.</p>
<p><a href="https://www.mercomindia.com/manu-srivastava-key-role-mp-energy-department" target="_blank" rel="noopener"><strong>The Madhya Pradesh government has appointed Manu Srivastava, IAS, as the Additional Chief Secretary in the Power and Renewable Energy Department.</strong></a> Srivastava was earlier the principal secretary of the Technical Education, Skill Development, and Employment Department and the Rural Industries Department. Before these appointments, Srivastava served as the Principal Secretary of Madhya Pradesh’s New and Renewable Energy Department, overseeing key responsibilities. He was also the commissioner for the New &amp; Renewable Energy Department, the Managing Director of Madhya Pradesh Urja Vikas Nigam, and the Chairperson of Rewa Ultra Mega Solar.</p>


Daily News Wrap-Up: Anticipation Builds in Solar Sector as Budget 2024 Approaches


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					</table><p>The solar industry stakeholders have a long wish list for the Union Budget 2024, which will be presented on February 1, 2024. Stakeholders hope Finance Minister Nirmala Sitharaman will announce tax and duty waivers for solar equipment to boost domestic solar manufacturing.</p>
<p>Mercom spoke to a cross-section of industry stakeholders to understand their expectations from the budget.</p>
<p>In the first nine months of 2023, India installed 5.6 GW of solar power capacity, marking a ~47% year-over-year (YoY) decrease from 10.5 GW. Utility-scale solar project installations totaled 4.2 GW, a 54% YoY decline. The numbers were reported in Mercom India Research&#8217;s recently published <a href="https://www.mercomindia.com/product/q3-2023-india-solar-market-update" target="_blank" rel="noopener">Q3 2023 India Solar Market Update</a>.</p>
<p>Cumulative solar capacity, including rooftop installations, exceeded 69 GW by September 2023.</p>
<p><strong>Favorable tax structure</strong></p>
<p>As the industry tries to cope with the increased goods and services tax (GST) costs, they hope for a favorable tax structure to help make the sector more competitive.</p>
<p>&#8220;Rationalizing the GST on solar projects is essential. The current GST rate of 13.8% is quite high and inversely affects return on investment. It should be reduced to make solar investment more attractive. Finally, ensuring easy access to working capital finance for EPCs is important, as it plays a key role in building quality solar assets in the country,&#8221; said <strong>Manjesh Nayak, CFO and Co-Founder of </strong><a href="https://www.oorjan.com/home" target="_blank" rel="noopener"><strong>Oorjan Cleantech</strong></a><strong>.</strong></p>
<p>&#8220;A reduction in GST for wind turbines and solar modules, from 12% to 5%, has the potential to bolster the renewable energy sector significantly. A lower tax on these critical components could contribute to cost reduction, enhancing the economic viability of renewable energy projects,&#8221; said <strong>Neerav Nanavaty, CEO at </strong><a href="https://blupineenergy.com/"><strong>BluPine Energy</strong></a><strong>.</strong></p>
<p>&#8220;Additionally, the inclusion of electricity within the GST framework would be a significant move. This adjustment can streamline tax processes, alleviate complexities, and potentially impact the overall tax burden on electricity. Given the current scenario where financing for renewable energy operates at commercial rates, a decrease in interest rates or the provision of subsidized rates could stimulate further development in this sector,&#8221; he added<strong>.</strong></p>
<p><strong>SK Gupta, Director and CFO, <a href="https://ampin.energy/" target="_blank" rel="noopener">AmpIn Energy Transition</a>,</strong> opined there is a clear need for realignment of tax and duty structure to help propel the renewable growth story. &#8220;GST rates on cells and modules should be reduced to 5%. Considering the current mismatch between the growing demand of cells and modules in the country and their operating domestic capacity, custom duty on cells may be continued for another year but at a lower rate of 5%.&#8221; He also called for closer integration between solar, wind, and battery solutions to make the round-the-clock energy dream a reality, especially for the C&amp;I sector. &#8220;This will need cost optimization of wind and battery solutions through a mix of GST and import duty rationalization, extension of PLI programs to these segments, and promoting in-house R&amp;D efforts.&#8221;</p>
<p><strong>According to Vineet Mittal, Chairperson of <a href="https://avaada.com/" target="_blank" rel="noopener">Avaada Group</a>, </strong>Section 115BAB of the Income Tax Act must be extended up to 2030 to enable the setting up of new manufacturing units for solar modules, electrolyzers, and green hydrogen production<strong>. &#8220;</strong>To boost the sector and achieve desired targets, GST should be kept nil, initially, on green hydrogen and its derivatives, whereas 5% GST should be reinstated on solar power generating system and its related parts.&#8221;</p>
<p><strong>Domestic manufacturing expectations </strong></p>
<p>Previous budgets aimed to incentivize domestic manufacturing, and this year&#8217;s budget will likely continue to do so. One main challenge to address is the reliance on solar module imports.</p>
<p>Said Nayak of Oorjan Cleantech, &#8220;The deferral of ALMM, a drop in the cost of imported cells and modules, higher financing opportunities, and increased consumer awareness have fueled recent growth in the rooftop solar segment. However, to meet our targets, there is still much to be done. As of December 31, 2023, the total installed renewable energy capacity (primarily solar and wind, excluding hydro) is only 31% of the total installed power capacity. Furthermore, the installed rooftop solar capacity has reached 11 GW, which is just a quarter of the March 2022 target of 40 GW.&#8221;</p>
<p>Nayak said the removal or reduction of Basic Customs Duty (BCD) on imported modules could further reduce prices and stimulate demand. A tax incentive, such as a rebate or deduction for domestic users, would boost residential solar adoption. Providing incentives to DISCOMs for exceeding rooftop solar targets would also have a positive impact.</p>
<p>Gupta of AmpIn hoped the government would further increase the size of priority capital investment in the sector by allocating much larger financial resources at a competitive cost, encouraging the industry to go into core backward integration in wafers, ingots, and silicon to optimize the solar value chain by higher allocation of PLI-based funds to promote it.</p>
<p><strong>Innovative Financing</strong></p>
<p>Stakeholders also want the government to announce innovative financing models to ease the financial burdens on manufacturers and developers.</p>
<p>&#8220;We expect substantial investments in R&amp;D, subsidies, and workforce development to drive down costs and boost competitiveness. Lower interest rates, dedicated green bonds, and innovative financing models are needed to ease financial burdens on manufacturers and developers. Simplified land acquisition, expedited clearances, and attractive tariffs are required to create a thriving investor climate. Mandatory rooftop solar installations, consumer subsidies, and export incentives for domestic equipment will unlock domestic demand and align with India&#8217;s Aatmanirbhar Bharat goals,&#8221; said <strong>Gyanesh Chaudhary, Chairman and Managing Director, <a href="https://www.vikramsolar.com/" target="_blank" rel="noopener">Vikram Solar</a> </strong>.</p>
<p>&#8220;Financial incentives such as tax credits, grants, and subsidies should be enhanced to make renewable energy solutions more economically viable for consumers and businesses alike. This can significantly reduce the initial investment barriers and accelerate the uptake of solar, wind, and other clean energy technologies,&#8221; said <strong>Vaibhav Roongta, Chief Business Officer at <a href="https://www.rayspowerinfra.com/" target="_blank" rel="noopener">Rays Power Infra</a> </strong><strong>.</strong></p>
<p>The solar industry hopes for a much better 2024 than the previous year and anticipates that the budget will assist in addressing the present challenges and sustaining the sector&#8217;s momentum.</p>


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