New Delhi: The Ministry of New and Renewable Energy has asked the Finance Ministry for long-term tax breaks to clean energy developers, as it seeks to end the general neglect of the sector that has the potential to generate over 80,000mw of power.
“The renewable energy sector does not get even one-third of the support which the conventional energy gets. How many times do we talk about renewable energy in the memorandum for annual budget?” Ministry of New and Renewable Energy Secretary V Subramanian said, addressing the India Cleantech Forum here.
The power generated from renewable energy sources like water, wind, solar and bio-mass constitutes under 10% of India’s total installed capacity.
While the installed capacity of renewable energy is 10,500mw a year, the country generates 75,000mw through thermal plants.
Subramanian said on 3 August he is in talks with the finance ministry for sops like long-term tax breaks to both existing and potential players.
“We have offered a whopping 80 per cent depreciation on equipment installation annually and are looking for a suitable law, incentives on such energy generation, waste utilisation.. we are discussing,” he said.
“Certain policy changes are required. It is for the government to give support,” he said, adding that nearly 97% investment in the space comes from private players.
The government is also working closely with Australia, besides others nations like China and the US for technology sharing, he said.