Mr Vilas Muttemwar union minister of state in the ministry of new & renewable sources said that union government has been encouraging private investment in renewable energy sector through a mix of fiscal and financial incentives that include capital or interest subsidy, accelerated depreciation, nil concessional excise and customs duties.

Further, as applicable to all new infrastructure projects, profits earned from sale of renewable power are exempt from income tax for any 10 years out of the first 15 years of project’s operation. This apart, preferential tariff for grid interactive renewable power is being given in most potential states.

Mr Muttemwar added that there is no proposal to set up corpus for the research and development in various new and development technologies at present. However, an amount of INR 1100 crores has been proposed to support R&D on different aspects of new and renewable energy technologies during 11th Plan period.