(a) whether certain States/UTs have imposed a green cess on generation/sale of electricity;
(b) if so, the details thereof;
(c) whether the Union Government has issued any guidelines in this behalf for creation of
infrastructure for renewable energy projects;
(d) if so, the details thereof; and
(e) the further measures being taken in this regard?
THE MINISTER OF NEW AND RENEWABLE ENERGY (DR. FAROOQ ABDULLAH)
(a) (b) (c) (d) & (e): A Statement is laid on the Table of the House.
Statement referred to in reply to parts (a) (b) (c) (d) & (e) of Lok Sabha starred Question
No. 537 for 03.05.2013
(a) & (b): As per available information the state of Maharashtra has imposed cess of 8 paise
per unit from 1st May 2008 on the sale of electricity to commercial and industrial consumers.
The cess is to be used for executing schemes of generation of renewable energy.
(c), (d) & (e): 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. Further, profits earned from sale of renewable power are exempt from income
tax for any 10 years out of the first 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
Corporation 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.