Renewable energy gets Rs 1,000 cr push

The alternative power sector players hailed the government initiatives to boost renewable energy sector.

The finance minister has allocated Rs 1,000 crore for the renewable energy sector. The government has set aside Rs 500 crore for new and renewable energy, Rs 400 crore for solar power-driven pump-sets and Rs 100 crore for the development of one mw solar parks on banks of canals.

“The budget has given a big boost which will help increase the installed wind power capacity to 4,000 mw from 2,500 mw within a year,” Ramesh Kymal, chairman and MD at Gamesa Wind Turbine, said.

The focus on the solar sector would help solar firms raise generation capacity, which currently is one per cent of total energy production in the country.

“The proposals will help the domestic solar manufacturing industry,” said Rajendra Kharul, director and head of the Centre for Wind Power, WISE, Pune.

Surenda Pimparkhedkar, fellow and head of the Centre for Renewable Regulation and Policy, WISE, said the proposal for solar-driven pumpsets would benefit states like Bihar.

Extension of the 10-year tax holiday till 31 March, 2017, provides much needed predictability. “These steps are likely to boost investment in the energy sector, which is likely to grow by 50 per cent in 2014-15,” Tulsi Tanti, chairman and MD at Suzlon Energy, said.

The target of the government is to provide 24/7 uninterrupted power to all homes augurs well for the energy sector.

“These steps are likely to boost investment in the wind energy sector, which is likely to grow by 50 per cent in 2014-15,” Tulsi Tanti, chairman and MD at Suzlon Energy, said.

He said the proposal to increase clean energy cess from Rs 50 per tonne to Rs 100 per tonne for financing and promoting was a major boost for wind energy in particular.

Narendra Surana, MD at Surana Ventures, said the tax holiday for those in power generation will be a big boost. “We have plans to set up a 50 mw solar plant, and also make additional investments into module making as all custom duties and taxes have been withdrawn on the raw materials,” he said.

michaelgonsalves@mydigitalfc.com

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