Sops for renewable energy projects to continue
New and Renewable Energy Minister Farooq Abdullah said on Friday his department would request the finance ministry to continue with existing incentive schemes for renewable power projects.india Updated: Jun 19, 2009 21:29 IST
New and Renewable Energy Minister Farooq Abdullah said on Friday his department would request the finance ministry to continue with existing incentive schemes for renewable power projects.
"We find there is a great worry among the corporate sector on what would happen to the existing incentives once the generation-based incentive scheme is launched," Abdullah said at the valedictory session of a seminar on green power, organised by Confederation of Indian Industry (CII).
"We are taking up with the finance ministry to continue both the incentive schemes and categories loans to renewable energy schemes as priority sector," the minister said, adding that a Renewable Energy Law was also being drafted.
Maintaining that his ministry was working on simplifying and rationalising various financing schemes, he said IREDA Ltd (formerly Indian Renewable Energy Development Agency) ought to refinance purchase of equipment like solar heaters by the end users.
"IREDA wants more funds for that and we are looking at their proposal," Abdullah said.
"The other growth catalyst for the sector is the states having a portfolio of renewable energy sources. Fourteen states have agreed for that and talks are on with the remaining states."
Referring to the poor domestic demand for solar water heating panels, Abdullah said: "I will talk to other central ministries, state governments and hotels to use solar water heaters so that the concept catches up fast across the country."
For instance, he said, discussions were on to use solar panels for the 2010 Commonwealth Games in Delhi.
According to him, a team of officials from various ministries has to be formed so that activities relating to renewable energy projects are taken up fast in a coordinated manner.