Assuring to honor energy contractual commitments, FM Sitharaman pleas investors to be supportive, away from worry

New Delhi, October 14: "India will honour contractual commitments under various energy agreements especially in renewables and investors need not worry about this issue", said Finance Minister Nirmala Sitharaman on Monday while addressing a forum in the national capital.

 

 

"We as a nation are concerned. We will make sure that commitments are honoured. That should not worry those investors or those who already invested in building capacities in India for energy and energy security,"she added at the India Energy Forum of CERAWeek.

 

Sitharaman further said that she was conscious that the nation was talking about uncertainties which would prevail. "But it is understandable and without taking any sides, I can tell you that commitments will be honoured. Therefore Investors need not have that concern", she affirmed.

 

Recently, Andhra Pradesh had asked government nodal agencies Solar Energy Corporation of India and NTPC to lower tariff of renewable energy projects auctioned by them under concluded power purchase agreements. The investors sentiment were affected due to this, especially in the renewable energy sector.

 

India has set an ambitious target of having 175 GW of renewable energy by 2022. Therefore, the nation requires huge investments to meet its target in next three years. Elaborating further Nirmala Sitharaman assured that the Government will take every step to make sure that atmosphere to invest is going to be friendlier.

 

Referring to challenges like crude oil prices, its supply and other issues, she said India needs to widen its energy basked in view of speculation in crude oil prices in international markets. "The government is committed to energy security. Though many of the country's thermal power plants run on coal, the ministry is moving away from coal-based to renewable sources", Sitharaman said.

 

The other goal, she said, was to provide at least an electricity connection to every household, which was not achieved earlier in 70 years. Earlier, Oil Minister Dharmendra Pradhan expressed hope that natural gas and aviation turbine fuel will be brought under Goods and Services Tax regime initially. At present, petroleum products like petrol, diesel, ATF and natural gas are out of GST, and states levy sales tax on these products.