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GST Cut on Renewable Gear to Save Discoms ₹23,000 Crore Annually: Joshi

Union Minister for New and Renewable Energy Pralhad Joshi announced that the recent GST reduction on renewable energy equipment from 12% to 5% will save discoms up to ₹23,000 crore annually. Speaking at the ET Energy Leadership Summit 2025, he said the rationalisation will cut clean energy project costs by 3-4%, lowering prices of solar modules, cells, and components. A 3 kW rooftop solar system under the PM Surya Ghar scheme will now be cheaper by ₹9,000–10,500, while 10 lakh solar pumps under PM-KUSUM could collectively save farmers ₹21,750 crore. The reform is expected to strengthen domestic manufacturing, with India targeting 100 GW of solar capacity by 2030, creating 5–7 lakh green jobs. Faster renewable adoption may also avoid 50–70 million tonnes of CO₂ emissions annually by 2030, aligning with India’s 500 GW non-fossil fuel target.