Budget 2014: FM Allocates 1,000 Crore For Renewable Sector Schemes

NEW DELHI: Calling it a 'high priority' area, Finance Minister Arun Jaitley allocated 1,000 crore for the solar power sector, a move that will boost energy generation from renewable sources.

The government aims to construct Ultra Mega Solar Power Projects or high capacity plants in the radiation rich states of Rajasthan, Gujarat, Tamil Nadu, and Ladakh in Jammu and Kashmir.

"I have set aside a sum of 500 crores for this as new and renewable energy deserves a very high priority," Jaitley said while presenting Budget, 2014-15.

The minister also announced launching a scheme for solar power driven agricultural pump sets and water pumping stations for energising one lakh pumps.

"I propose to allocate a sum of 400 crore for this purpose. An additional 100 crore is set aside for the development of 1 MW Solar Parks on the banks of canals," he said.

Implementation of the Green Energy Corridor Project will be accelerated in the current financial year to facilitate evacuation of renewable energy across the country.

Green Energy Corridor Project is aimed at synchronising electricity produced from renewable sources, such as solar and wind, with conventional power stations in the grid.

"We need to maximise our utilisation of solar power. The existing duty structure incentivizes imports rather than domestic manufacture of solar photovoltaic cells and modules," Jaitley said.

He added that flat copper wire used for the manufacture of PV (photovoltaic) ribbons will be exempted from basic customs duty.

"A concessional basic customs duty of 5 percent is also being extended to machinery and equipment required for setting up of a project for solar energy production," he said.

He added that flat copper wire used for the manufacture of PV (photovoltaic) ribbons will be exempted from basic customs duty.

"A concessional basic customs duty of 5 percent is also being extended to machinery and equipment required for setting up of a project for solar energy production," he said.
READ ALSO:
Conglomeration for Consumer Goods Companies
Budget 2014: A Balm for Businesses Hurt By Tax!