Financial Support For Renewable Energy
Financial Support For Renewable Energy
At an average installation cost of Rs. 6.5 crore per MW, the total investments requirement for the up-scaled target of 175 GW by 2022 (including for creating supporting infrastructure and manufacturing) is estimated to be USD 200 billion. This was stated by Shri Piyush Goyal, Minister of State (IC) for Power, Coal & New and Renewable Energy in a written reply to a question in the Rajya Sabha today.
The Minister stated that the major policy initiatives taken by the Government to mobilize long term financing for renewable energy projects, inter alia, include financing of renewable energy projects through National Clean Energy Fund (NCEF) as per its norms, increasing the authorized capital of Indian Renewable Energy Development Agency and extending new lines of credit to enable it enhance its concessional loan to RE projects, mobilizing project based concessional loans through multi-lateral and bi-lateral agencies i.e. World Bank, Asian Development Bank, KfW - Germany; inclusion of Renewable Energy Projects in Priority Sector Lending of Banks; and approval for issuance of tax free infrastructure bonds for funding renewable energy projects.
The Minister further stated that to attract the private investment in renewable energy sector, Government provides incentives in the forms of generation based incentives/subsidies, viability gap funding from NCEF, fiscal incentives such as accelerated depreciation, concessional customs duty, excise duty exemptions, income tax holiday for 10 years and preferential tariff for renewable energy power projects. Besides, MNRE organized a Global Renewable Energy Investment Promotion Meet (REINVEST) in February, 2015 to showcase the potential and policy options available in the RE sector wherein commitment from power producers, manufacturers and financial institutions were received for investments in the solar energy, wind energy, small hydro and bio energy sectors, the Minister added.
The Minister stated that the major policy initiatives taken by the Government to mobilize long term financing for renewable energy projects, inter alia, include financing of renewable energy projects through National Clean Energy Fund (NCEF) as per its norms, increasing the authorized capital of Indian Renewable Energy Development Agency and extending new lines of credit to enable it enhance its concessional loan to RE projects, mobilizing project based concessional loans through multi-lateral and bi-lateral agencies i.e. World Bank, Asian Development Bank, KfW - Germany; inclusion of Renewable Energy Projects in Priority Sector Lending of Banks; and approval for issuance of tax free infrastructure bonds for funding renewable energy projects.
The Minister further stated that to attract the private investment in renewable energy sector, Government provides incentives in the forms of generation based incentives/subsidies, viability gap funding from NCEF, fiscal incentives such as accelerated depreciation, concessional customs duty, excise duty exemptions, income tax holiday for 10 years and preferential tariff for renewable energy power projects. Besides, MNRE organized a Global Renewable Energy Investment Promotion Meet (REINVEST) in February, 2015 to showcase the potential and policy options available in the RE sector wherein commitment from power producers, manufacturers and financial institutions were received for investments in the solar energy, wind energy, small hydro and bio energy sectors, the Minister added.
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