Generation-Based Incentive for Wind Energy Projects Announced

The Finance Minister, Shri P. Chidambaram while presenting the Budget 2013-14 in Lok Sabha today 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.

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.

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DSM/AL/NV/32

(Release ID :92718)