India, April 19 -- Green power firms want GST on RECs removed. How justified is it?
Renewable Energy (RE) companies have moved the Delhi High Court, seeking an exemption for Renewable Energy Certificates (RECs) under the goods and services tax (GST).
The tradable RECs are awarded for every 1 mega-watt hour (MWh) of electricity generated. Together with Renewable Purchase Obligations (RPO), RECs act as market-pull incentives that create demand for renewable energy installations.
RPO, instituted in 2011, is a mandate that requires large power procurers to source a pre-determined fraction of their electricity from renewable sources.
The Ministry of New and Renewable Energy (MNRE) introduced incremental annual RPO targets amounting to 21 per...