Recent GST cuts are set to unlock liquidity and lower capital costs for renewable energy developers, says Siddharth Bhatia, Managing Director of Mumbai-based independent power producer Oyster Renewable Energy, in conversation with INFRASTRUCTURE TODAY’s Manish Pant. He argues that these reforms—if aligned with Make in India priorities—could accelerate project execution and attract foreign capital. Bhatia also believes that punitive Trump-era tariffs have, counterintuitively, helped serious domestic players gain scale and resilience through strategic rebalancing.
How self-reliant has India’s transition to green energy sources been so far? Have policy interventions, such as anti-dumping measures aimed at curbing the influx of cheap or sub-standard components, positively influenced domestic manufacturing?
India’s push for self-reliance in green energy has made notable strides, particularly with policy interventions such as anti-dumping duties, the ALMM (Approved List of Models and Manufacturers), and the PLI (Production Linked Incentive) schemes. These measures have strengthened domestic manufacturing, improved quality, and reduced dependence on imports, making the supply chain more robust for independent power producers like Oyster Renewables. For the C&I (commercial and industrial sector), this has meant greater confidence in sourcing reliable, high-quality components locally, ensuring both cost-effectiveness and long-term sustainability in our projects.
Could you outline the most significant milestones in India’s energy transition, from early wind and solar auctions to the growing demand for more complex, integrated projects? What key factors have driven these shifts?
India’s energy transition has evolved through several pivotal milestones. Early wind and solar auctions in the 2010s catalysed rapid capacity addition and price discovery. The National Solar Mission set ambitious targets, while the implementation of the ALMM policy marked a turning point in quality assurance and domestic manufacturing. More recently, the move toward hybrid projects—combining wind and solar—has gained momentum, driven by the need for RTC (round-the-clock) power and grid stability. For Oyster Renewables, milestones include our 282 MW wind-solar hybrid project with Jindal Stainless and our 201.6 MW wind partnership with Suzlon, both tailored for C&I clients. Key drivers have included falling technology costs, supportive policies, the extension of ISTS (Inter State Transmission System) charge waivers, and the growing demand from industry for reliable, low-carbon power. These factors have enabled us to scale up and target 2 GW of green capacity in the next 4 years, with over half already under development.
How would you assess the progress made under the National Green Hydrogen Mission so far? At this stage, how close is India to achieving a breakthrough in the production and adoption of affordable green hydrogen?
The National Green Hydrogen Mission has set a clear direction for India’s next phase of energy transition. While policy frameworks and pilot projects are underway, large-scale, cost-competitive green hydrogen production remains a medium-term goal. For the C&I sector, affordable green hydrogen will be a game-changer, enabling industries to decarbonise beyond electricity. However, challenges around electrolyser costs, supply chain readiness, and offtake agreements persist. We are closely monitoring developments and exploring partnerships to integrate green hydrogen solutions as they become viable, but a true breakthrough in affordability and adoption will likely require another three to four years of sustained innovation and investment.
What are some of the persistent challenges—whether policy-related, financial, or infrastructural—and how might these be most effectively addressed?
Persistent challenges include policy uncertainty, such as the future of ISTS charge waivers, high upfront capital costs, and delays in regulatory approvals. Grid integration, land acquisition, and timely payments from off-takers also remain hurdles. For the C&I segment, ensuring predictability in policy and access to innovative financing models is critical. Accelerated grid modernisation, streamlined approvals, and continued support for domestic manufacturing will be key enablers. At Oyster Renewables, we believe collaborative approaches—between government, industry, and financiers—will be essential to unlock the next wave of growth and drive India’s clean energy ambitions forward.
With the rollout of the GST 2.0 reforms, how do you anticipate the renewable and sustainable energy landscape shaping up? Are there particular provisions you believe could unlock new growth or investment opportunities?
The recent GST cut is a welcome step that directly addresses one of the long-standing anomalies in project economics. By reducing the effective cost of modules, inverters, and EPC (engineering, procurement and construction) services, it immediately lowers capex for developers and improves tariff competitiveness. This is already translating into 7-10 per cent relief in capital costs, which is significant in a market where thin margins often determine whether a project reaches financial closure. What is equally important is how this change can unlock liquidity. With smoother input tax credit flows, developers will face less working-capital strain, which means faster order placement and quicker commissioning. From a policy standpoint, the next frontier should be linking GST reforms with Make in India priorities. For instance, ensuring clarity on domestic content requirements and targeted incentives for green technologies. That combination of lower friction, lower costs, and policy certainty can set the stage not just for faster deployment, but also for greater foreign capital inflows and stronger domestic lending appetite.
You have also said that the punitive Trump-era tariffs may, counterintuitively, catalyse domestic growth in renewable energy manufacturing. What gives you confidence in that outcome, especially in light of broader concerns around cost and supply chain volatility?
Tariffs are painful in the short term because they distort costs and strain supply chains, but they also force strategic rebalancing. The Trump-era measures have already pushed markets to diversify away from single-source dependencies and accelerate domestic manufacturing policies. In India’s case, the parallels are striking. We have seen policy levers like ALMM, PLI, and customs duties drive meaningful capacity build-out. Furthermore, there would be an expected drop in module prices domestically due to fewer modules being exported in the short term, alongside the GST rate cut, thereby fuelling faster project executions and domestic growth. What gives me confidence is the structural shift in demand; renewable capacity is not optional anymore, but a hard target for both energy security and decarbonisation. Once that demand is inelastic, any friction on imports naturally channels investment into local ecosystems. Supply chain volatility is real, but it creates exactly the kind of environment where credible domestic players gain relevance, scale, and resilience. Over time, those shocks actually become the catalyst for a stronger, more competitive domestic base.
- Manish Pant