Page 41 - Policy Economic Report - September 2025

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Strengthening Renewable Energy Growth and Ease of Doing Business

The Minister underlined that India has also achieved the milestone of 50% of installed electricity capacity
from non-fossil fuel sources five years ahead of schedule. He, however, cautioned that capacity addition
must be complemented by effective utilisation, and urged states to expedite Renewable Purchase
Obligations (RPOs), power purchase agreements (PPAs), and land allotments in a transparent manner.
“Timely action is the backbone of this system. If we keep delaying procurement on the expectation that
tariffs will fall further, we are missing the bigger picture”, the Minister said.

Shri Joshi called upon states to strengthen Ease of Doing Business in the renewable sector by adopting
single-window clearance systems, reducing compliances, and resolving Right of Way and law-and-order
issues faced by developers. He stressed that investor confidence hinges on proactive facilitation by state
governments.

The Minister also called upon wind-rich states to come up with time-bound roadmaps for new site
allocation and transmission readiness. He welcomed the recent GST cut on renewable energy devices and
services from 12% to 5%, which would make solar, wind, biogas, and waste-to-energy systems more
affordable. He urged states to promote these technologies more actively.

On domestic manufacturing, Shri Joshi highlighted the success of the PLI Scheme for High Efficiency Solar
PV Modules with an outlay of ?24,000 crore. He informed that India now has 100 GW of module
manufacturing capacity, ?50,000 crore investments, and over 12,600 direct jobs created under the
scheme.

Shri Joshi also stressed that India’s energy transition will succeed only through collective action by the
Centre, states, industry, and citizens. He assured full support from MNRE and invited all stakeholders to
share ideas for accelerating the renewable energy growth story.

Speaking at the occasion, Union Minister of State for New and Renewable Energy Shri Shripad Naik said
that PM-KUSUM and PM Surya Ghar: Muft Bijli Yojana schemes lie at the heart of our mission to ensure
energy security, sustainability, and empowerment of citizens. Shri Naik also said that PM-KUSUM Scheme
has been a true game-changer for our farmers. Out of the 49 lakh solar pumps allocated, over 16 lakhs
have already been installed or solarised. This has reduced diesel consumption by 1.3 billion litres annually,
cut 40 million tonnes of CO2 emissions, and saved precious foreign exchange. In PMSGY, installations are
happening at the rate of 4,500 systems per day, supported by over 18,000 vendors nationwide. The
Minister added that PM KUSUM and PMSGY represent the spirit of India’s energy transition, empowering
farmers and households, cutting emissions, creating jobs, and positioning India as a global leader in
renewable energy.

Secretary, MNRE Shri Santosh Kumar Sarangi said that India’s green energy transition is vital for achieving
net zero by 2070, with targets of 1,800 GW renewable capacity by 2047 and 5,000 GW by 2070. He
highlighted successful state practices such as Maharashtra’s PM-KUSUM implementation, Gujarat’s
renewable clusters, and Karnataka’s land facilitation.

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