Home > politics > policy > Energy projects suffered setback due to lack of funds: panel

New Delhi: Various solar and wind energy projects have suffered a “setback" due to shortage of funds and ministry of new and renewable energy should pursue with ministry of finance for allocation of more funds for renewable energy projects, a parliamentary committee on Monday said.

The parliamentary standing committee on energy, which tabled its report before Lok Sabha, added that budget allocation for the ministry under the 12th Five-Year Plan (2012-2017) is far below than the amount demanded by the ministry of new and renewable energy (MNRE).

The report found that the ministry had demanded 40,000 crore, but was allocated only 19,113 crore. Even the allocation of funds for the first three years is unevenly distributed. In 2012-13, the ministry was allocated 1,150 crore, 1,738 crore for 2013-14 and 2,519 crore for 2014-15.

“Scrutiny of the information supplied by the MNRE reveals that the programmes of the ministry, such as wind power and solar power have suffered a setback due to shortage of funds thereby creating pending liabilities for future," the committee said in its recommendations.

“Keeping in view the significance of renewable energy vis-a-vis conventional energy, the committee recommends that the Mnre should pursue with Ministry of Finance and get allocation of more funds so that the renewable energy programmes may not face a setback," it added.

The committee has also recommended that the ministry should revisit the physical and financial targets under various heads and evolve strategy with a view to see that the allocated funds for the on-going Five-Year Plan gets proper thrust.

Emphasis was also given on research and development activities in the renewable energy sector. “Thrust area of research should be resource indentification, resources assessment, technological development, demonstration, popularisation, cost competitiveness and commercialisation of new and renewable energy sources." “They (renewable energy) can become an effective alternative of conventional sources of energy, provided due attention is given to R&D in this sector," the report said.

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