The government should give income tax benefits to manufacturers of solar and wind energy

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equipment in view of global initiatives on climate change and sustainability, industry body CII said.

"The benefits of tax holiday under the Income Tax Act could be extended to undertakings engaged in the manufacturing of advanced energy efficient products, manufacturers of equipments used in solar, wind and other environment friendly resources," it said.

In its recommendation for the forthcoming Budget, it also said that a tax refund should be provided equal to 150 per cent of expenditure incurred on cost and installation of energy saving technologies.

Installation of energy efficient technologies often involve significant cost, it added.

It further recommended that tax incentives should be given to an individual for investing in companies engaged in generation of renewable energy or such other businesses resulting in water efficiency and carbon emission reduction.

India has a national action plan and is committed to reduce carbon emission intensity by 20-25 per cent to 2005's levels.