‘Renewable Energy’ may not have been mentioned by the Finance Minister, but the Budget has made an allocation of ₹5,036 crore to the Ministry of New and Renewable Energy, — ₹262 crore by way of ‘gross budgetary support’ and another ₹4,200 crore from the National Clean Energy Fund.Tarun Kapoor, Joint Secretary in-charge of solar in MNRE, said he hoped the ministry would get more allocation from NCEF.

Renewable energy industry leaders see scope for more transfers out of the fund to the sector because the budget has doubled the coal cess to ₹400 for every tonne of coal mined or imported. The moneys collected go into NCEF.

Ramesh Kymal, Chairman and Managing Director, Gamesa India, a leading wind turbine manufacturer, said he hoped the wind sector would not be overlooked during allocations.

The wind industry is less sanguine about the budget as the finance ministry speaks of reducing the Accelerated Depreciation benefit to 40 per cent from April 1, 2017.

This will have some adverse impact on the ‘AD market’ that is made up of companies in non-energy businesses who put up windmills to save tax.

Sunil Jain, CEO and Executive Director, Hero Future Energies, said the huge allocations to irrigation would give a boost to solar pumps.

Second, basic Customs duty on industrial solar water heaters has been raised to 10 per cent, to help domestic manufacturers. Customs duty on glass used in manufacture of solar panels has been raised to 5 per cent.

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