REconnect Summit Pune: GST 2.0 to Give Huge Boost to Renewable Energy Sector, Says Tuhin Sinha
At the REconnect Summit Pune, BJP's National Spokesperson Tuhin Sinha highlighted India’s renewable strides, GST 2.0 benefits, and policy reforms, while addressing industry concerns on taxation, solar waste, and implementation challenges.
September 20, 2025. By EI News Network
During the event, BJP’s National Spokesperson Tuhin A. Sinha, guest of honour for the event, addressed the gathering, saying, “My involvement with energy initiatives has been limited to co-authoring the book Climate Action India, released in January this year with Dr. Kaviraj Singh of Earthhood, a company engaged in carbon offset trade verification.”
He emphasised the remarkable progress of India’s renewable sector over the past decade, stating that the country has advanced from a renewable capacity of 100 GW to 260 GW, with an ambitious target of 500 GW by 2030. He highlighted the crucial role of RE professionals as frontline warriors in India’s larger climate goals.
He further pointed out Prime Minister Narendra Modi’s unprecedented commitment to renewables, recalling how India surprised the world in 2021 by announcing its net-zero ambition during the COVID crisis. Sinha said Modi’s vision follows the BHAG (Big Hairy Audacious Goal) approach, setting seemingly insurmountable targets that become achievable when broken into actionable parts.
Further, dwelling on policy, Sinha drew attention to the government’s recent GST 2.0 reforms, effective September 22, 2025, which reduced GST on solar PV modules, turbines, and biogas plants from 12 percent to 5 percent. He said, “All of these would lead to reduced project costs overall, boost to local manufacturing and a 3 percent to 4 percent cost reduction for Indian-made components supporting the 100 GW solar manufacturing target by 2030. And this is expected to create 5 to 7 lakh green jobs over the next decade, with each gigawatt of manufacturing generating 5,000 jobs. Obviously, this would lead to increased investments also.”
Elaborating on India’s goals, Sinha pointed to 500 GW of non-fossil energy capacity and 50 percent of energy needs to be met through renewables by 2030, with carbon emissions cut by 1 billion tonnes and carbon intensity reduced by 45 percent. He stressed the pivotal role of solar energy in this roadmap.
He further added that tax clarity and lower costs should attract INR 1 to 1.5 lakh crore for 300 GW renewable energy capacity by 2030. “And obviously, there are some benefits for farmers also via PM-KUSUM’s scheme, which saves INR 1,750 crore on 10 lakh solar pumps, boosting rural solar adoption,” he added.
He also highlighted the Pradhan Mantri Surya Ghar Muft Bijli Yojana, launched one and a half years ago, as a transformative initiative boosting rural solar adoption, while the PM-KUSUM programme has been instrumental in supporting farmers.
While Sinha expressed optimism, he acknowledged challenges such as scrap management in the solar sector and skill development, particularly AI enablement in the renewable energy sector. He invited industry participants to share their suggestions.
The discussion then turned interactive, with participants raising issues on solar waste recycling, implementation of the PM Surya Ghar Muft Bijli Yojana, discom-level challenges, vendor concerns, financial support, and the responsibility of institutions benefiting from solar installations.
Participants highlighted that Prime Minister Modi’s schemes are known for their strong focus on implementation and targeting of specific groups. For the Surya Ghar Yojana, the scheme aims to provide rooftop solar connections of 1–3 kW to one crore households. While state discoms and nodal agencies have been asked to ensure smooth roll-out, vendors and EPC contractors flagged persistent ground-level issues, including financial and logistical hurdles.
Industry representatives also pointed out that while the government has already extended subsidies, additional financial support from corporates, CSR funds, and NGOs will be critical to achieve large-scale success. “Now, we will be able to do more power generation with very little infrastructure. But for that, vendor-level bottlenecks must be resolved,” one participant noted.
Participants also discussed ownership and accountability at the user end, particularly in public institutions like schools and hospitals where solarisation is happening rapidly. Concerns were raised that principals and administrators should take responsibility for ensuring that the large government investments in rooftop solar achieve their intended outcomes.
On taxation, manufacturers expressed concerns about the short transition window for GST cuts, saying, “Suddenly, if the changes apply within 22 or 30 days, it becomes very difficult to exhaust existing stocks. This creates a direct hit on profitability,” while seeking clarity on possible rebates.
Another participant described the GST relief as a ‘Diwali bonus for end-users,’ while acknowledging that manufacturers and OEMs face dilemmas in adjusting pricing.
Reacting to their concerns, Sinha assured that he would act as a ‘catalyst’ in forwarding them to the ministry.
Concluding the session, Sinha said, “We like to reach out to different sectors of the economy and have this conversation. Your feedback is always very important for making the industry grow further and for reaching the 2030 targets.”
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