The Finance Minister, Shri P. Chidambaram while
presenting the Budget 2013-14 in Lok Sabha yesterday proposed to provide Rs.
800 crore for the Ministry of New & Renewable Energy for
generation-based incentive for wind energy projects as the
non-conventional wind energy sector deserves incentives.
In March 2012, Indian government had ended both GBI as well as the
accelerated depreciation scheme for wind Power. As a result there was a significant drop in new wind power
installations in the country. According to the latest data released by Indian Wind Turbine Manufacturers
Association, the country saw more than 50% (YoY) dip in New Wind Power
installations due to the end of the support provided by both the GBI and Accelerated depreciation.
Minister said "The non-conventional wind energy sector deserves incentives. Hence, I propose to reintroduce ‘generation-based incentive’ for wind energy projects and provide `800 crore to the Ministry of Non Renewable Energy for the purpose."
Also Shri Chidambarm hinted at evolving a scheme to encourage cities and municipalities to take-up waste-to-energy projects in PPP mode which would be neutral to different technologies. The scheme is to be evolved keeping in view India’s several thousand tonnes of garbage produced every day. The Government will support municipalities that will implement waste-to-energy projects through different instruments such as viability gap funding, repayable grant and low cost capital.
The Finance Minister stated that the consumer at present pays high price for renewable energy due to the high cost of finance. In order to provide low cost finance, the Government would provide low interest bearing funds from the National Clean Energy Fund (NCEF) to IREDA to on-lend to viable renewable energy projects. The scheme will have a life span of five years, the Minister added.
