The 12th Plan may include eight-year-long generation-based incentives and depreciation allowance to boost energy from new and renewable sources.

This was indicated by Farooq Abdullah, Minister for New and Renewable Energy, at the India Carbon Market Conclave here on Thursday.

Abdullah said, “The provision for inclusion of these incentives have been discussed with the Planning Commission and I have requested them to offer these for a larger period of eight years rather than five given during the 11th Plan.”

The full Planning Commission is slated to meet here on Saturday to finalise the Plan document.

Abdullah expressed confidence that the National Development Council, which is to meet soon, would ratify the Ministry’s proposals on renewable energy.

The Minister cautioned the domestic industry against import of cheap, low-quality technology and urged them to go in for the latest equipment from the US and Europe.

Asked whether India would be able to offer power to Pakistan, as was being talked about in recent India-Pakistan peace parleys, Abdullah said, “Although India is deficient in power and our needs are growing at a rapid pace, sometimes in the interest of building and maintaining good-neighbourly relations, such gestures have to be made”.

V. Saibaba, CEO, Lanco Solar and Chairman, FICCI Solar Energy Task Force, called for lower interest rates. If this is done, the renewable energy sector would not require any subsidies from the Government, he added.

He also urged the Government to focus its policy on rooftop solar technology applications and storage technology.

(This article was published on September 13, 2012)
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