The New Nation - Internet Edition

THE government keeps on harping that it wishes alternative power sources to develop in the backdrop of poor supply of conventional energy. But its public statements are not matched by appropriate measures in this area. A manifestation of this has been the proposed budgetary measures on solar panels and equipment. Import duties are imposed on equipment and solar panels and developers of solar power have been drawing the attention of the government for long that VAT and import duties on these need to be either waived or reduced substantially to facilitate the rapid spread of solar power use in the country. But no such tax or duty cuts or waiver are noted in the budgetary proposals and this has come as a damper for entrepreneurs in this sector. However, there is still time to act in this area as the budget has not yet been passed and there is scope to consider such tax and duty reductions or waiver.

Notwithstanding the pricey nature of solar power installations, the same have been rapidly growing in the country. The power ministry indicated recently that there are plans to increase power output using renewable resources by 10 per cent at an early date. And the most promising of the renewables is solar power. But one fails to understand how the drive to popularise the renewables, specially solar power, can quite succeed when supporting fiscal policies are not there. There are several firms in the solar sector which have drawn up extensive plans to make available solar power to a vast number of consumers. There efforts would help reduce pressure from the national grid and open up a bright alternative for many types of users of power who otherwise remain depressed in their entrepreneurial activities.