Calling it a 'high priority' area, Finance Minister Arun Jaitley on Thursday allocated Rs 1,000 crore for the solar power sector, a move that will boost energy generation from renewable sources.
The government aims to construct ultra-mega solar power projects or high capacity plants in the radiation rich states of Rajasthan, Gujarat, Tamil Nadu, and Ladakh in Jammu and Kashmir.
"I have set aside a sum of Rs 500 crores for this as new and renewable energy deserves a very high priority," Jaitley said while presenting Budget, 2014-15.
The minister also announced launching a scheme for solar power driven agricultural pump sets and water pumping stations for energising one lakh pumps.
"I propose to allocate a sum of Rs 400 crore for this purpose. An additional Rs 100 crore is set aside for the development of 1 MW Solar Parks on the banks of canals," he said.
Implementation of the Green Energy Corridor Project will be accelerated in the current financial year to facilitate evacuation of renewable energy across the country.
Green Energy Corridor Project is aimed at synchronizing electricity produced from renewable sources, such as solar and wind, with conventional power stations in the grid.
"We need to maximise our utilization of solar power. The existing duty structure incentivizes imports rather than domestic manufacture of solar photovoltaic cells and modules," Mr Jaitley said.
He added that flat copper wire used for the manufacturing of photovoltaic (PV) ribbons will be exempted from basic customs duty.
"A concessional basic customs duty of 5 per cent is also being extended to machinery and equipment required for setting up of a project for solar energy production," he said.
The current installed power generation capacity of the country is 2,49,488 MW of which renewables constitute 31,692 MW, according to official data.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
