GST cut on green power parts may save Rs 3,000 cr in power purchases

New Delhi: The renewable energy ministry on Wednesday said the reduction in GST on equipment is expected to lower the levelised renewable tariffs and could translate into annual savings of ₹2,000-3,000 crore in power procurement costs.

For instance, the capital cost of a utility-scale solar project, which typically amounts to ₹3.5-4 crore per megawatt, will see savings of ₹20-25 lakh/MW, the ministry said.