"The recent rationalization of GST rates by the government is a highly commendable and strategic move that will significantly benefit the power transmission and EPC sector, especially in the context of India's ambitious clean energy goals. The reduction of GST on critical renewable energy equipment and components from 12% to 5% is a game-changer. This will directly lower the capital expenditure for new projects, making them more financially viable and attractive for both developers and investors. For the EPC sector, this translates to reduced project costs and enhanced competitiveness, which in turn will put downward pressure on tariffs and make clean energy more affordable for the end consumer. The government has also reduced the GST on green hydrogen and electrolyzers, which will provide a major boost to this nascent sector. This will further support the growth of the green hydrogen economy and increase demand for related infrastructure and equipment.

 

This policy decision aligns perfectly with the national agenda of accelerating the energy transition and achieving our 2030 targets. The clarity provided on the long-disputed valuation of EPC contracts is a welcome step that will reduce litigation and compliance uncertainties. This move will not only boost investor confidence but also streamline project execution, which is the very core of our business. While the industry will need to navigate some short-term complexities, such as renegotiating existing Power Purchase Agreements (PPAs) under 'Change in Law' clauses, the long-term benefits are overwhelmingly positive. We are confident that this forward-thinking policy will play a pivotal role in creating a robust and competitive renewable energy landscape, ensuring that India remains on track to achieve its green energy and infrastructure development goals."