Green cess on industries will be utilized in generation of renewable energy

The state governments of Maharashtra is implementing plans for generating renewable energy in the state and are planning schemes to finance the projects of renewable energy. In 2008 Maharashtra state government had imposed cess of 8 paise per unit on the sale of electricity to commercial and industrial consumers, which is implemented since, 1^st May 2008. The government has planned to utilize the money raised from the collection of cess for executing schemes of generation of renewable energy.

Government is providing all possible facilities and support from various sectors to generate ample amount of renewable energy to more and more optimization of the resources. The Electricity Act 2003 and Tariff Policy 2006 provide enabling framework for renewable energy projects in the country. Government of India has also been providing fiscal and financial incentives for renewable energy sources based power generation systems and quantum and type of incentive depends upon area, capacity, renewable energy technology, and category of beneficiary etc.

As initial installation expenses of renewable energy plants is quite expensive and the initial gains are very minimum, government is providing support to this also, by providing tax exemption on profits earned from sale of renewable power for any 10 years out of initial 15 years of projects’ operation, as applicable to infrastructure projects.

In addition, under an assignment from the Ministry of New and Renewable Energy the Power Grid Cooperation of India Ltd. (PGCIL) has prepared a report for augmenting renewable power evacuation infrastructure for the likely renewable power capacity addition during 12th Five Year Plan period in eight major renewable resource rich states namely Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Maharashtra, Rajasthan, Tamil Nadu and also Jammu & Kashmir. These states are not only rich in terms of renewable energy but also major economically, geographically and for employment generation, hence renewable energy generation is must in such states.