Question : DEVELOPMENT OF NCES



(a) whether the Government propose to encourage private sector in the field of non-conventional energy sector;

(b) if so, the details thereof;

(c) the efforts made by the Government in this regard during the last three years; and

(d) the response of private entrepreneurs thereto?

Answer given by the minister


MINISTER OF STATE OF THE MINISTRY OF NON-CONVENTIONAL ENERGY SOURCES (INDEPENDENT CHARGE) (SHRI VILAS MUTTEMWAR)

(a) & (b): Yes, Sir. Private participation is being encouraged for setting up grid-interactive renewable power projects. To encourage investment in these projects, financial and fiscal incentives are being provided which include capital/ interest subsidy, accelerated depreciation and relief from taxes & duties. In addition, preferential tariff is being given to grid-interactive renewable power in most potential states. A higher level of central financial assistance is being provided to special category states and island territories for setting up non-conventional energy projects.

(c) & (d): Renewables contribute about 6 per cent (6160 MW) of the total installed capacity in the country, as on 31.3.2005. As much as 18 per cent, i.e., 2643 MW of the additional installed power generating capacity has been commissioned during the last 3 years (FY2002-03, 2003-04 & 2004-05). Of this, 13 per cent (1967 MW) has come from wind power, 2 per cent (267 MW) from small-hydro power and around 3 per cent (407 MW) from bio-energy. Over two-third share in the total grid-interactive renewable power installed capacity is that of the private sector and around one-third of the Government.