No Financial Commitments In Indias Budget For Renewable Energy Sector

According to reports, though budget reiterated government's ambitious capacity addition plans in renewable energy sector, it failed to talk about funds towards development of clean energy, feels the industry.

Besides seeking priority sector lending status, the industry was expecting government announcements with regard to access of low cost funds and various other avenues such as ECBs (external commercial borrowings). But no announcement was made on finance side.

India needs about Rs. 250,000 crore of investments to reach its targets.

The industry was looking for some incentives such as tax free bonds and clear usage of the increased coal cess.

However, the proposal to increase the clean energy Cess Rs.100 to Rs.200 will benefit the industry as it would significantly boost the National Clean Energy Fund (NCEF) to finance clean energy and related initiatives.

Total collection so far under NCEF was Rs.17,084 crore and 46 clean energy projects worth Rs.16,511 crore have been recommended for funding out of the NCEF till September 2014.

Reference: energy-news-blog.blogspot.com