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Government of India
Ministry of New and Renewable Energy
07-February-2014 17:23 IST
Investment in Renewable Energy Sector

The Ministry of New and Renewable Energy (MNRE) has set a target of capacity addition of 29,800 MW from renewable energy sources during 12th Plan Period

The Ministry of New and Renewable Energy (MNRE) has set a target of capacity addition of 29,800 MW from renewable energy sources during 12th Plan Period. The target comprises of 15,000 MW from wind, 10,000 MW from solar, 2,100 MW from small hydro and 2,700 MW from bio-power.

The Government is giving various fiscal and financial incentives, such as capital/interest subsidy, generation based incentive, accelerated depreciation, concessional excise and custom duties for the promotion of renewable energy sources in the country. The Government has a policy to encourage transfer of foreign technologies, including those in renewable energy sector. Foreign Direct Investment up to 100% under the automatic route is permitted in Renewable Energy subject to provisions of Electricity Act, 2003. As a result, a capacity addition of over 3,684 MW has been achieved during the first two years of the 12th Plan i.e. 2012-13 and 2013-14 (upto 31.12.2013).

            The Ministry consults Ministry of Finance for providing tax incentives, funding of projects under National Clean Energy Fund, tax free bonds, external assistance for renewable energy.

            The steps taken to obtain more investments are as below:-

 

i.        Investment by the Public and Private sector companies/institutions with the government in Research, Development and Technology Demonstration.

ii.       Fiscal and Financial incentives, such as capital/interest subsidies, accelerated depreciation, nil/concessional excise and customs duties.

iii.      Preferential tariff for grid interactive renewable power following the provisions made under the National Electricity Policy 2005 and National Tariff Policy 2006; Uniform guidelines by CERC for fixation of such preferential tariffs being issues every year;

iv.      Jawaharlal Nehru National Solar Mission launched to facilitate large scale capital investment in solar energy sector; Viability Gap Funding for grid connected Solar Power Projects under the Mission.

 

v.       Intensive Resource Assessment.

vi.      Creation of trained and qualified manpower in different aspects of renewable energy.

vii.     Interaction with Central Ministries and Public Sector Undertakings for promotion of renewable energy in their offices/complex as well as programmes implemented by them.

 

This information was given by the Minister of New and Renewable Energy Dr. Farooq Abdullah in a written reply in the Lok Sabha. 

 

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