Budget 2015: Renewable energy ministry seeks incentives for solar sector

NEW DELHI: The renewable energy ministry has sought incentives such as excise duty exemption and 10-year tax holiday in the forthcoming budget to give a boost to the solar energy sector.

In its suggestions to Finance Minister Arun Jaitley, the Ministry of New and Renewable Energy (MNRE) has also pitched for 25 per cent capital subsidy through the modified special incentive package scheme or NCEF for manufacturing of equipment for the solar energy sector, an official said.

"We have also demanded customs and excise duty exemptions," the official added.

The solar energy sector in the country is still in the preliminary stage when compared to other matured sectors, domestic manufacturing needs special incentives to provide the relevant push to achieve growth, the official said.

Earlier, Power, Coal and Renewable Energy Minister Piyush Goyal had said that the Renewable Energy Ministry has asked Jaitley to come out with "innovative financing models" in the upcoming Budget to help the sector attract overseas funds, while amending the inverted duty structure.

Jaitley will unveil the government's first full-fledged budget on February 28.

The country's renewable energy sector is looking at attracting USD 200 billion in investments.

The government aims to have 1,00,000 MW of installed solar power capacity by 2022 from the present around 3,000 MW. It is also looking at rooftop solar model.