New Delhi: Finance minister P. Chidambaram on Thursday proposed to reintroduce generation-based incentives for wind energy projects, expected to benefit companies such as Suzlon Energy Ltd, and provide Rs.800 crore to the ministry of new and renewable energy for the purpose.
To promote other environment-friendly energy projects, the government will also provide low-interest-bearing funds to the Indian Renewable Energy Development Agency for lending to renewable energy projects, he said presenting the Union Budget for 2013-14.
The National Clean Energy Fund, which functions under the renewable energy ministry, will provide the money and the scheme will have a life span of five years, he said.
Noting that the country tosses out several thousand tonnes of garbage each day, Chidambaram said the government will evolve a scheme to encourage cities and municipalities to take up waste-to-energy projects in the form of public-private partnerships.
“I propose to support municipalities that will implement waste-to-energy projects through different instruments such as viability gap funding, repayable grant and low-cost capital,” he said.