GoI encouraging pvt investment in renewable energy
The Government of India is taking taken various measures to augment power generation from renewable energy sources, mainly with private investment. It is providing various fiscal and financial incentives for renewable power projects that include capital/ interest subsidy, accelerated depreciation and nil/ concessional excise and customs duties, said the Minister for New and Renewable Energy, Dr. Farooq Abdullah.
Under the Electricity Act 2003, it has been made obligatory upon State Electricity Regulatory Authorities to fix a minimum percentage for purchase of electricity from renewable sources taking into account local factors. Preferential tariff for grid interactive renewable power is being given in most potential States following the provisions made under the National Electricity Policy 2005 and National Tariff Policy 2006. Uniform guidelines by CERC for fixation of such preferential tariffs have been issued recently. The National Solar Mission approved recently is also expected to enable large-scale capital investment in solar power generation.