During its 56th meeting on September 3 in New Delhi, the GST Council announced a reduction in taxes on renewable energy equipment and components. The revised tax rate of 5 percent now applies to items such as biogas plants, wind turbines, solar cookers, solar water systems, and photovoltaic cells, aimed at supporting the growth of clean energy infrastructure.
Renewable energy companies are expected to attract attention on Thursday following the GST Council’s decision to reduce taxes on solar cookers, solar water systems, and related components from 12% to 5%. This move is expected to lower costs for developers and accelerate the transition to clean energy.
Finance Minister Nirmala Sitharaman announced that the revised GST rates for renewable energy devices and components will be implemented from September 22. This reduction brings the tax rate down to 5%, benefiting sectors like solar and wind energy.
Here are the stocks likely to benefit from the GST cut:
Adani Green Energy Ltd
Adani Green Energy Ltd, a subsidiary of the Adani Group, is one of India’s largest renewable energy companies. It focuses primarily on the development, construction, and operation of solar and wind power projects. AGEL has a significant portfolio of projects spread across India and is rapidly expanding its presence in both domestic and international markets.
With a market capitalization of Rs. 1,49,382.18 Crores on Thursday, the shares of Adani Green Energy Ltd jumped upto 1.9 percent after making a high of Rs. 954.20 compared to its previous closing price of Rs. 936.00.
KPI Green Energy Ltd
KPI Green Energy Ltd is a Gujarat-based company that primarily engages in the business of generating renewable power through solar energy. The company provides turnkey solar power solutions for both residential and commercial sectors and also develops, installs, and operates solar power plants.
With a market capitalization of Rs. 9,748.65 Crores on Thursday, the shares of KPI Green Energy Ltd jumped upto 1.5 percent after making a high of Rs. 503.70 compared to its previous closing price of Rs. 496.10.
Sterling & Wilson Renewable Energy Ltd
Sterling & Wilson Renewable Energy Ltd is a leading global player in the renewable energy sector, specializing in providing end-to-end solutions for solar power projects. The company offers services in the development, engineering, procurement, and construction (EPC) of solar projects.
With a market capitalization of Rs. 6,289.17 Crores on Thursday, the shares of Sterling & Wilson Renewable Energy Ltd jumped upto 0.9 percent after making a high of Rs. 275.20 compared to its previous closing price of Rs. 272.70.
Tata Power Company Ltd
Tata Power Ltd, part of the prestigious Tata Group, is one of India’s largest integrated power companies with a significant focus on renewable energy. The company generates electricity through diverse sources, including wind, solar, hydro, and thermal power. Tata Power is at the forefront of India’s transition to cleaner energy solutions and has invested heavily in solar and wind power projects across the country.
With a market capitalization of Rs. 1,23,531.83 Crores on Thursday, the shares of Tata Power Ltd jumped upto 0.7 percent after making a high of Rs. 391.95 compared to its previous closing price of Rs. 389.05.
Waaree Energies Ltd
Waaree Energies Ltd is a leading manufacturer of solar modules and a provider of solar power solutions in India. The company’s products are widely used in residential, commercial, and industrial solar applications. It has a strong presence in the solar manufacturing sector and is known for producing high-efficiency solar panels.
With a market capitalization of Rs. 93,058.21 Crores on Thursday, the shares of Waaree Energies Ltd jumped upto 1.3 percent after making a high of Rs. 3266.50 compared to its previous closing price of Rs. 3223.70.
NTPC Green Energy Ltd
NTPC Green Energy Ltd, a subsidiary of NTPC Limited, focuses on developing renewable energy projects, particularly in the areas of solar and wind power. It is part of NTPC’s broader strategy to transition to cleaner energy sources and reduce its carbon footprint. The company is actively involved in India’s efforts to expand its renewable energy capacity and contribute to the nation’s sustainability targets.
With a market capitalization of Rs. 88,855.65 Crores on Thursday, the shares of NTPC Green Energy Ltd jumped upto 0.28 percent after making a high of Rs. 106.40 compared to its previous closing price of Rs. 105.10.
Written by Sridhar J
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