Eco Peeko
13th April 2015, 09:48
In Late 2014, Narendra Modi's Government launched the "Make In India" Campaign aimed at boosting 25 selected industries in India by inviting foreign capital and knowledge to locally produce in India. Usually, a boost in the economy, especially sectors like manufacturing, is bad news for the environment. But thankfully, The government has mentioned that all progress has to be made in accordance to environmental norms.
India has the fifth largest power generation portfolio worldwide with a power generation capacity of 245 GW. The current renewable energy contribution stands at 31.70 GW of the total installed capacity of 245 GW in the country as of 31.03.2014. The country's main renewable sources are Solar and Wind. Although wind is the current dominant renewable energy, solar is expected to grow drastically with 20,000 MW being generated by 2022.
The Government has understood the importance and the potential of India to produce clean energy and it is for this reason that an array of incentives have been provided to local as well as international players to come and develop the sector. The biggest boon has been the opening up of the sector with 100% FDI (Foreign Direct Investment) allowed. Other benefits include:
Allocation of INR 5 Billion towards the proposed ultra-mega solar power projects in Rajasthan, Gujarat, Tamil Nadu and Ladakh in J&K
Excise duty is being reduced from 12% to NIL on forged steel rings used in the manufacture of bearings of wind-operated electricity generators.
Full exemption from excise duty is being provided for solar tempered glass used in the manufacture of solar photovoltaic cells
Full exemption from excise duty is being granted in respect of machinery, equipments etc. required for setting up of solar energy production projects.
A 10-year tax holiday for solar power projects for Hydro projects, biomass projects and Solar projects.
Guaranteed market through solar power purchase obligation for states.
With all of these incentives in place, hopefully businesses will realize it's high time they switch to renewable energy and take advantage of these terms and policies while they last.
Do you think the Indian Government is doing the right thing?
India has the fifth largest power generation portfolio worldwide with a power generation capacity of 245 GW. The current renewable energy contribution stands at 31.70 GW of the total installed capacity of 245 GW in the country as of 31.03.2014. The country's main renewable sources are Solar and Wind. Although wind is the current dominant renewable energy, solar is expected to grow drastically with 20,000 MW being generated by 2022.
The Government has understood the importance and the potential of India to produce clean energy and it is for this reason that an array of incentives have been provided to local as well as international players to come and develop the sector. The biggest boon has been the opening up of the sector with 100% FDI (Foreign Direct Investment) allowed. Other benefits include:
Allocation of INR 5 Billion towards the proposed ultra-mega solar power projects in Rajasthan, Gujarat, Tamil Nadu and Ladakh in J&K
Excise duty is being reduced from 12% to NIL on forged steel rings used in the manufacture of bearings of wind-operated electricity generators.
Full exemption from excise duty is being provided for solar tempered glass used in the manufacture of solar photovoltaic cells
Full exemption from excise duty is being granted in respect of machinery, equipments etc. required for setting up of solar energy production projects.
A 10-year tax holiday for solar power projects for Hydro projects, biomass projects and Solar projects.
Guaranteed market through solar power purchase obligation for states.
With all of these incentives in place, hopefully businesses will realize it's high time they switch to renewable energy and take advantage of these terms and policies while they last.
Do you think the Indian Government is doing the right thing?