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Home » Solar Photovoltaic » India Solar PV project policy, dark!
India Solar PV project policy, dark!
Is this policy making or Open Loot with Policy making authority with few to benefit few of their coterie through Democracy....:
a). When NSM was not there, 1 MW IREDA Solar PV projects were sanctioned (god knows how that process of sanctioning to Power brokers of power corridors without having any capability to set up Solar PV) when the Project cost was around Rs.20Cr with a tariff of Rs.18 to 19/kwh. Many applied, many executed and now many are technically poorly connected with Grid, but, many saved the Taxes through Accelerated Depreciation and low interest rate support from IREDA.
Same mistake of allotting small or mini hydro to the children or punters of MLA or MP (3 to 5 per MLA in some states !! today, you are hearing the project extension related corruption, now after 10 to 15 years after allotment!!).... Is this policy making with Transparency and Accountability? Who is benefited??!!, certainly not the NATION !!
b). Gujarat Government with NSM, announced Rs.15/kwh for 12 years and Rs.5/kwh from 13th year till 25th year. Executed 900 MW (how many are really technically good nor evacuating the power, it is well known), but, many project developers including cinema stars, breweries or such unconnected field investors DID NOT PAY INCOME TAX due to accelerated depreciation, that too by importing panels and inverters from Abroad, no GDP boosting in INDIA that too with high tariff Support.... Is this Policy Making with Transparency and Accountability?? Who is benefited??!!, certainly not the NATION !!
c). IN 2009, Central Government brought NSM with first immediate allotment of 150 MW (50 MW to lanco, whose promoter is an MP and 100 MW to Reliance Power, less said about these two companies, more better would be for Economy of INDIA) with a high Tariff of Rs.18/kwh, but, these companies got extension (while not paying the huge amount of taxes due to AD) and executed the project and evacuation started with extensions, when, already the reverse bidding was at Rs.7.54/kwh....Is this Policy Making and Implementation with Transparency and Accountability? Who is benefited??!!, certainly not the NATION !!
d). Reverse bidding started, but, the history is known to worsen the case with AD (No tax payment) + Viability Gap Funding (read as Election Funding) despite big no from many, but, BRAZENED OUT with democratic power vested with such policy makers....Is this Policy Making and Implementation with Transparency and Accountability? Who is benefited??!!, certainly not the NATION !!
e). Roof top solar PV with RGGVY with 90% subsidy (i.e only 10% invested in Jungles, by few to suck the inflated project costs with Chinese panels too) and the project equipments are not visible and hence no power, hence, the country is in DARK again.....Is this Policy Making and Implementation with Transparency and Accountability? Who is benefited??!!, certainly not the NATION !!
f). Roof top solar PV: Even today, the so called FiT with high CAPEX and 30% Subsidy with roof rental or such unsustainable policies, Indians are paying through nose of Rs.9.5/kwh to benefit few companies......The AD benefit taken away by these companies with Commercial Roof top solar pv is well known.....Is this Policy Making and Implementation with Transparency and Accountability? Who is benefited??!!, certainly not the NATION !!
g). Many Project Prescriptions with high tariff support despite high CAPEX are being enlisted as POLICY MAKING to benefit few despite such OPEN CORRUPT PRACTICES supported by State ERCs high tariff, which DISCOMs are not ready to buy......Is this Policy Making and Implementation with Transparency and Accountability? Who is benefited??!!, certainly not the NATION !!
h). REC, an economic suicide to make the entire nation to pay Rs.16 to 23/kwh only to avoid paying taxes (Accelerated Depreciation is the main criteria with inflated project costs with funding from FIs abroad) and NO REC buying by DISCOM (and why should they buy when other routes are giving them at rs.7/kwh in total)......Is this Policy Making and Implementation with Transparency and Accountability? Who is benefited??!!, certainly not the NATION !!
Hence, the total loss of Tax collection due to Solar of less than 2 GW is around Rs. 11,000 Crore (CAG to review) no subsidy considered, no VGF considered in this Rs.11,000 Crore.
If we include the Wind (around 20GW), the NET LOSS OF TAX COLLECTION FROM RICH ENTITIES (for 28GW of Renewable Energy in the last 13 years) might be around a minimum of Rs. 80,000 Crore to the maximum of Rs. 140,000 Crore (without considering Capital subsidy doled out to Biomass, Solar roof top solar pv etc).
i). We boast of in many seminars that ours in the only country to have a separate Ministry for Renewable energy department, is this to make such huge TAX LOSS without accountability, why??....Is this Democracy / Policy Making and Implementation with Transparency and Accountability? Who is benefited??!!, certainly not the NATION !!
j). Instead, what I suggested was :
1). Let these profit making companies retain the tax payable (for 4 to 6 years as Tax Holiday) in their books and it MUST invest in Renewable Energy (up to 100% of the project value or 30% Project value as equity and rest they can arrange debt fund based on the collaterals as they have done now with AD adjustment) and repay this tax saved in the next 15 years to the Income tax department WITHOUT INTEREST, thus, this money becomes 100% INTEREST FREE DEBT FUND extracted out of their tax payable and INDIA need not lose that tax as these companies can pay over 15 years instalment without any Interest, hence, a win-win situation for the INVESTORS, no need to worry about running to Financial institutions, as the FUNDING HAS HAPPEND through internal revenue generation through INCOME TAX HOLIDAY !! Thus, we could have even bought the Renewable Energy at a very low cost as there is not high interest rate component....
The IAS, State Administration, Law Makers (Member of Parliament and Assembly) and the existing INDUSTRIALISTS who want to be Bharat Ratna, have failed INDIA with such TAX CHORI policy making (illegal actions legalised through Policy Making)....
Even now, it is not too late, we can ask these tax evaders to pay back (without any penalty or Interest) the taxes saved as the ASSET ACQUIRED or SOLD is through our / PUBLIC MONEY.....
This is how we can Change INDIAs Economy with rubust tax collections and also promotion of Industry to create lot of jobs...... If these large industries do not agree to such proposal, just collect taxes and issue this fund as INTEREST FREE 100% DEBT to company like ours and we sell the energy at a very low cost at Rs. 5.2 to 5.6/kwh of Solar PV instead of Rs. 9 to 15/kwh what Gujarat Government or other State / Centre Government are buying despite such huge loss of tax collection of over 70,000 Crore Rupees !!
Needless to say, if Government wanted to fund these projects for 28,000 MW @ 7 Cr/MW of Renewable energy, it would have needed only = 28,000 x 7 = 196,000 Crores !!
If all such tax of over Rs. 140,000 + 6,800 (Capital Subsidy doled out) = Rs. 146,800 Crore which could be around 146800/7 = 20,857 MW, but, the large parcels of land and other private ownership of property would have been with the NATION with a low cost of Energy that too by supporting local industries to supply the components.....
This is a great Economic disaster while the country was headed by a great economist as our PM and a disguised Pro People CM in a Progressive State...., the way the policies are made and FREE PUBLIC MONEY (TAX money through AD) is now in the pocket of PRIVATE PLAYERS and it is not too late to recover as it is against the Nation's INTEREST.....
a). When NSM was not there, 1 MW IREDA Solar PV projects were sanctioned (god knows how that process of sanctioning to Power brokers of power corridors without having any capability to set up Solar PV) when the Project cost was around Rs.20Cr with a tariff of Rs.18 to 19/kwh. Many applied, many executed and now many are technically poorly connected with Grid, but, many saved the Taxes through Accelerated Depreciation and low interest rate support from IREDA.
Same mistake of allotting small or mini hydro to the children or punters of MLA or MP (3 to 5 per MLA in some states !! today, you are hearing the project extension related corruption, now after 10 to 15 years after allotment!!).... Is this policy making with Transparency and Accountability? Who is benefited??!!, certainly not the NATION !!
b). Gujarat Government with NSM, announced Rs.15/kwh for 12 years and Rs.5/kwh from 13th year till 25th year. Executed 900 MW (how many are really technically good nor evacuating the power, it is well known), but, many project developers including cinema stars, breweries or such unconnected field investors DID NOT PAY INCOME TAX due to accelerated depreciation, that too by importing panels and inverters from Abroad, no GDP boosting in INDIA that too with high tariff Support.... Is this Policy Making with Transparency and Accountability?? Who is benefited??!!, certainly not the NATION !!
c). IN 2009, Central Government brought NSM with first immediate allotment of 150 MW (50 MW to lanco, whose promoter is an MP and 100 MW to Reliance Power, less said about these two companies, more better would be for Economy of INDIA) with a high Tariff of Rs.18/kwh, but, these companies got extension (while not paying the huge amount of taxes due to AD) and executed the project and evacuation started with extensions, when, already the reverse bidding was at Rs.7.54/kwh....Is this Policy Making and Implementation with Transparency and Accountability? Who is benefited??!!, certainly not the NATION !!
d). Reverse bidding started, but, the history is known to worsen the case with AD (No tax payment) + Viability Gap Funding (read as Election Funding) despite big no from many, but, BRAZENED OUT with democratic power vested with such policy makers....Is this Policy Making and Implementation with Transparency and Accountability? Who is benefited??!!, certainly not the NATION !!
e). Roof top solar PV with RGGVY with 90% subsidy (i.e only 10% invested in Jungles, by few to suck the inflated project costs with Chinese panels too) and the project equipments are not visible and hence no power, hence, the country is in DARK again.....Is this Policy Making and Implementation with Transparency and Accountability? Who is benefited??!!, certainly not the NATION !!
f). Roof top solar PV: Even today, the so called FiT with high CAPEX and 30% Subsidy with roof rental or such unsustainable policies, Indians are paying through nose of Rs.9.5/kwh to benefit few companies......The AD benefit taken away by these companies with Commercial Roof top solar pv is well known.....Is this Policy Making and Implementation with Transparency and Accountability? Who is benefited??!!, certainly not the NATION !!
g). Many Project Prescriptions with high tariff support despite high CAPEX are being enlisted as POLICY MAKING to benefit few despite such OPEN CORRUPT PRACTICES supported by State ERCs high tariff, which DISCOMs are not ready to buy......Is this Policy Making and Implementation with Transparency and Accountability? Who is benefited??!!, certainly not the NATION !!
h). REC, an economic suicide to make the entire nation to pay Rs.16 to 23/kwh only to avoid paying taxes (Accelerated Depreciation is the main criteria with inflated project costs with funding from FIs abroad) and NO REC buying by DISCOM (and why should they buy when other routes are giving them at rs.7/kwh in total)......Is this Policy Making and Implementation with Transparency and Accountability? Who is benefited??!!, certainly not the NATION !!
Hence, the total loss of Tax collection due to Solar of less than 2 GW is around Rs. 11,000 Crore (CAG to review) no subsidy considered, no VGF considered in this Rs.11,000 Crore.
If we include the Wind (around 20GW), the NET LOSS OF TAX COLLECTION FROM RICH ENTITIES (for 28GW of Renewable Energy in the last 13 years) might be around a minimum of Rs. 80,000 Crore to the maximum of Rs. 140,000 Crore (without considering Capital subsidy doled out to Biomass, Solar roof top solar pv etc).
i). We boast of in many seminars that ours in the only country to have a separate Ministry for Renewable energy department, is this to make such huge TAX LOSS without accountability, why??....Is this Democracy / Policy Making and Implementation with Transparency and Accountability? Who is benefited??!!, certainly not the NATION !!
j). Instead, what I suggested was :
1). Let these profit making companies retain the tax payable (for 4 to 6 years as Tax Holiday) in their books and it MUST invest in Renewable Energy (up to 100% of the project value or 30% Project value as equity and rest they can arrange debt fund based on the collaterals as they have done now with AD adjustment) and repay this tax saved in the next 15 years to the Income tax department WITHOUT INTEREST, thus, this money becomes 100% INTEREST FREE DEBT FUND extracted out of their tax payable and INDIA need not lose that tax as these companies can pay over 15 years instalment without any Interest, hence, a win-win situation for the INVESTORS, no need to worry about running to Financial institutions, as the FUNDING HAS HAPPEND through internal revenue generation through INCOME TAX HOLIDAY !! Thus, we could have even bought the Renewable Energy at a very low cost as there is not high interest rate component....
The IAS, State Administration, Law Makers (Member of Parliament and Assembly) and the existing INDUSTRIALISTS who want to be Bharat Ratna, have failed INDIA with such TAX CHORI policy making (illegal actions legalised through Policy Making)....
Even now, it is not too late, we can ask these tax evaders to pay back (without any penalty or Interest) the taxes saved as the ASSET ACQUIRED or SOLD is through our / PUBLIC MONEY.....
This is how we can Change INDIAs Economy with rubust tax collections and also promotion of Industry to create lot of jobs...... If these large industries do not agree to such proposal, just collect taxes and issue this fund as INTEREST FREE 100% DEBT to company like ours and we sell the energy at a very low cost at Rs. 5.2 to 5.6/kwh of Solar PV instead of Rs. 9 to 15/kwh what Gujarat Government or other State / Centre Government are buying despite such huge loss of tax collection of over 70,000 Crore Rupees !!
Needless to say, if Government wanted to fund these projects for 28,000 MW @ 7 Cr/MW of Renewable energy, it would have needed only = 28,000 x 7 = 196,000 Crores !!
If all such tax of over Rs. 140,000 + 6,800 (Capital Subsidy doled out) = Rs. 146,800 Crore which could be around 146800/7 = 20,857 MW, but, the large parcels of land and other private ownership of property would have been with the NATION with a low cost of Energy that too by supporting local industries to supply the components.....
This is a great Economic disaster while the country was headed by a great economist as our PM and a disguised Pro People CM in a Progressive State...., the way the policies are made and FREE PUBLIC MONEY (TAX money through AD) is now in the pocket of PRIVATE PLAYERS and it is not too late to recover as it is against the Nation's INTEREST.....
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