Finance minister Arun Jaitley has allocated Rs 5036 crore for the renewable energy sector in Budget 2016. The finance minister in Budget 2015-16 had revised the target of renewable energy capacity to 1,75,000 MW till 2022, comprising 1,00,000 MW solar, 60,000 MW wind, 10,000 MW biomass and 5,000 MW small hydro.
The government has also proposed to increase Plan expenditure for the Power Ministry by over 50% to Rs 12,200 crore for the next fiscal as compared to revised estimates of Rs 8,084.37 crore in this financial year. The cumulative capacity of about 38,820 MW renewable energy capacity includes 25,088 MW from wind power, 4,878 MW from solar power, 4,177 MW from small hydro power and 4,677 MW from bio-power. The renewable energy ministry had also sought over Rs 10,000 crore as increased budgetary allocation to meet this ambitious target. By way of incentive, Jaitley has reduced excise duty on carbon pultrusions used for manufacture of rotor blades, and intermediates, parts and sub-parts of rotor blades for wind operated electricity generators, to 6 percent from 12.5 percent. At the same time, excise duty on unsaturated polyester resin (polyester-based infusion resin and hand layup resin), hardeners/hardener for adhesive resin, vinyl easter adhesive (VEA) and epoxy resin used for manufacture of rotor blades, and intermediates, parts and sub-parts of rotor blades for wind-operated electricity generators being increased to 6 percent from nil. By 2022, India aims to have an installed solar energy capacity of 100 gigawatts (Gw) and wind turbine capacity amounting to another 60 Gw. In total, it hopes to have 175 Gw worth of renewable energy (RE) capacity by 2022. The next target is to double this, to 350 Gw of RE by 2030. Assuming all targets are met, about 40 per cent of total power capacity will be RE by 2030, with solar and wind forming the backbone. (Much less than 40 per cent of actual power generation would be from renewables because RE load factors are low. I feel overall it's a good budget set in the right direction as it can potentially tackle & work towards many reforms. As , India's economy is growing faster than China's this year, and the most of any major economy in the world. There is certainly a potential for an acceleration in growth in India whereas the rest of the world is slowing down. SANJITH S. SHETTY
The government has also proposed to increase Plan expenditure for the Power Ministry by over 50% to Rs 12,200 crore for the next fiscal as compared to revised estimates of Rs 8,084.37 crore in this financial year. The cumulative capacity of about 38,820 MW renewable energy capacity includes 25,088 MW from wind power, 4,878 MW from solar power, 4,177 MW from small hydro power and 4,677 MW from bio-power. The renewable energy ministry had also sought over Rs 10,000 crore as increased budgetary allocation to meet this ambitious target. By way of incentive, Jaitley has reduced excise duty on carbon pultrusions used for manufacture of rotor blades, and intermediates, parts and sub-parts of rotor blades for wind operated electricity generators, to 6 percent from 12.5 percent. At the same time, excise duty on unsaturated polyester resin (polyester-based infusion resin and hand layup resin), hardeners/hardener for adhesive resin, vinyl easter adhesive (VEA) and epoxy resin used for manufacture of rotor blades, and intermediates, parts and sub-parts of rotor blades for wind-operated electricity generators being increased to 6 percent from nil. By 2022, India aims to have an installed solar energy capacity of 100 gigawatts (Gw) and wind turbine capacity amounting to another 60 Gw. In total, it hopes to have 175 Gw worth of renewable energy (RE) capacity by 2022. The next target is to double this, to 350 Gw of RE by 2030. Assuming all targets are met, about 40 per cent of total power capacity will be RE by 2030, with solar and wind forming the backbone. (Much less than 40 per cent of actual power generation would be from renewables because RE load factors are low. I feel overall it's a good budget set in the right direction as it can potentially tackle & work towards many reforms. As , India's economy is growing faster than China's this year, and the most of any major economy in the world. There is certainly a potential for an acceleration in growth in India whereas the rest of the world is slowing down. SANJITH S. SHETTY
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