Government attracts private investment in energy sector

New Delhi, Mar 17 (UNI) To attract corporate and private investment in renewable energy sector, the government is providing a mix of fiscal and financial incentives that include capital subsidy, accelerated depreciation and concessional excise and custom duties.

Further, benefit under Section 80-1 A of Income Tax Act, 1961 is available to undertakings setup for the generation and distribution of renewable power in India.

''This apart, preferential tariff for a grid interactive renewable power in India,'' Minister and State for New And Renwable Energy Vilas Muttemwar said in a written reply to the Rajya Sabha.

The grid-interactive power installed capacity from renewable energy sources such as wind, biomass, solar and small hydro in the country as on March 31, 2007 was 10,250 MW which has reached 11,447 MW on January 31, 2008.

A capacity addition of 14,000 MW from renewable energy sources is proposed during the 11th plan, he said.

Mr Muttemwar said the Ministry had said any registered company, as project developer would be eligible to set up solar power projects on build, own and operate basis.

A maximum of 10 MW capacity solar power generation projects would be considered in a state, he said.

UNI RT PDT RK1536