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Duty on China imports, GST slow down India’s solar additions: UN report

The 86-page report — Global Trends in Renewable Energy Investment 2018 — released by UN Environment, the Frankfurt School-UNEP Collaborating Centre and Bloomberg New Energy Finance blames Indian policies for slowing down the speed to tap solar power.

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UN Environment head Erik Solheim

New Delhi, April 5 : India’s imposition of duty on Chinese solar cells and modules shipped and levy of Goods and Services Tax (GST) on panels have significantly slowed down solar capacity additions last year, a UN report said on Thursday.

It says developing economies, comprising India, China and Brazil, committed $177 billion to renewables last year, up 20 per cent, compared to $103 billion for developed countries, down 19 per cent.

This was the largest tilt in favour of developing countries yet seen. It was only in 2015 that the developing world first invested more in green energy than developed economies.

A record 157 gigawatts (GW) of renewable power, excluding large hydro, were commissioned across the globe in 2017, up from 143GW in 2016 and far out-stripping the 70GW of net fossil fuel generating capacity added last year.

The 86-page report — Global Trends in Renewable Energy Investment 2018 — released by UN Environment, the Frankfurt School-UNEP Collaborating Centre and Bloomberg New Energy Finance blames Indian policies for slowing down the speed to tap solar power.

It says the solar activity was held back by an unexpected rise in PV module prices in local currency terms, due to a sudden reduction in the oversupply of imported Chinese units, exacerbated by the imposition of a 7.5 per cent import duty on modules and a local GST on panels.

There was also a slowing in the pace of solar auctions around India.

In the medium term, PV installations look set to increase sharply, as India seeks to hit its ambitious target of 100GW of solar by 2022.

However, that acceleration did not materialise in 2017.

The report says the ‘big three’ of China, India and Brazil accounted for just over half of global investment in renewables, excluding large hydro, last year, with China alone representing 45 per cent, up from 35 per cent a year earlier.

However, the report says India’s investment oscillating in the $6-14 billion range since 2010 but still not reaching the sort of levels that would be required for that country to meet Prime Minister Narendra Modi’s ambitious goals for 2022.

India came fourth in the world rankings by country for renewable energy investment last year, at $10.9 billion, down 20 per cent.

Solar took the biggest share, at $6.7 billion, with wind at $4 billion. These lead sectors were up three per cent and down 41 per cent in dollar terms respectively.

Venture capital and private equity investment in renewable energy fell by exactly a third in the world in 2017 to $1.8 billion, just a sixth of its 2008 peak of more than $10 billion.

However, India beat Europe into second place for the second time in three years.

India’s venture capital and private equity investment rose 27 per cent to $457 million, or 26 per cent of the total, while Europe’s fell 26 per cent to $287 million, a 16 per cent share.

India’s investment grew strongly because it secured three of the five largest deals.

Two of those were wind companies raising funds to expand in India, a fiercely competitive market with huge growth potential that is attracting many foreign investors.

The largest deal was secured by Greenko Energy, an independent power producer based in Hyderabad, which raised $155 million in PE expansion capital from GIC, the sovereign wealth fund of Singapore, and the Abu Dhabi Investment Authority.

The pair had already invested $230 million in the company in 2016.

Another Indian independent power producer, Hero Future Energies, raised $125 million in PE expansion capital from the International Finance Corporation and the IFC Global Infrastructure Fund.

The third large Indian deal was secured by Clean Max Enviro Energy Solutions, which claims to be India’s biggest rooftop solar developer, having installed 100MW since the company was founded in 2011.

“The extraordinary surge in solar investment, around the world, shows how much can be achieved when we commit to growth without harming the environment,” UN Environment head Erik Solheim said in a statement.

(Vishal Gulati can be contacted at [email protected])

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Key equity indices provisionally end in green

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Mumbai, April 23: The key Indian equity indices provisionally closed in the green on Monday on the back of healthy buying in consumer durables, healthcare and IT stocks.

However, selling pressure on metal and fast moving consumer goods (FMCG) stocks trimmed gains in the market.

At 3.30 p.m., the wider Nifty50 of the National Stock Exchange (NSE) provisionally closed higher by 20.65 points or 0.20 per cent at 10,584.70 points.

The barometer 30-scrip Sensitive index (Sensex) of the BSE, which opened at 34,493.69 points, closed at 34,450.77 points (3.30 p.m.) — up 35.19 points or 0.10 per cent — from its previous session’s close.

The Sensex touched a high of 34,663.95 points and a low of 34,259.27 during the intra-day trade.

The BSE market breadth was bullish with 1,399 advances and 1,284 declines.

On Monday, the major gainers on the BSE were IndusInd Bank, Mahindra and Mahindra, Sun Pharma, Asian Paints and Yes Bank while HDFC Bank, Tata Motors (DVR), Coal India, Hero MotoCorp and ICICI Bank were among the major losers.

On NSE, the top gainers were IndusInd Bank, Mahindra and Mahindra and BPCL. The major losers were Hindalco Industries, Indiabulls Housing Finance and UPL.

On Friday, negative global cues such as high crude oil prices, along with a weak rupee and heavy selling pressure in banking stocks subdued the key Indian equity markets.

The Nifty50 closed at 10,564.05 points on Friday, down 1.25 points or 0.01 per cent from its previous close and the Sensex closed at 34,415.58 points, down 11.71 points or 0.03 per cent.

IANS

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TCS first Indian company to achieve $100 billion m-cap

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Mumbai, April 2: IT bellwether Tata Consultancy Services (TCS) on Monday emerged as the first Indian listed company to cross the $100-billion mark in terms of market capitalisation (m-cap).

Around 11 a.m., the m-cap of the company stood at Rs 675,934.95 crore or $101.60 billion on the BSE.

Shares of the company rose over four per cent to a new high of Rs 3,557 per share.

On Friday, the IT major’s shares rose over seven per cent to Rs 3,419.80 per share, taking its m-cap to over Rs 6.50 lakh crore or around $98 billion — close to the $100 billion mark.

The company’s shares had surged a day after its quarterly results announcement, which reported a net profit for Q4 at Rs 6,925 crore — up 4.6 per cent — from Rs 6,622 crore in the same period in 2017 and up 5.8 per cent sequentially from Rs 6,545 crore a quarter ago.

It also announced 1:1 bonus shares of Re 1 face value to its investors at the end of fiscal 2017-18.

IANS

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Centre congratulates Bengal for becoming revenue surplus

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Secretary, Revenue, Dr. Hasmukh Adhia
Hasmukh Adhia, Finance Seceretary.File Photo

Kolkata, April 22 (IANS) The Central government has congratulated the West Bengal government as the state has become revenue surplus in March, officials said.

In a recent communication to state Chief Secretary Malay De, Union Finance Secretary Hasmukh Adhia said: “As far as West Bengal is concerned, the revenue gap has come down from 33.4 per cent in August to (-) 3 per cent in March. The revenue shortfall in West Bengal has been coming down steadily but there seems to have been a spike of a major gain in March where suddenly your revenue deficit has now become revenue surplus.”

“I would like to congratulate West Bengal for such a performance. We do hope that the trend will continue in future months also,” he wrote.

Adhia also mentioned the performance of Goods and Services Tax (GST) collection is improving with some ups and downs.

IANS

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