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

Further benefit under Section 80-1A of Income Tax Act 1961 is available to undertakings setup for the generation or generation and distribution of Renewable power in India. This apart, preferential tariff for grid interactive renewable power is being given in most potential States.

Mr Muttemwar said that a potential of 84,776 MW has been estimated from renewable energy sources such as wind, biomass, solar and small hydro in India. The grid interactive power installed capacity from the renewable sources like wind, biomass, solar and small hydro in the country at the end of the 10th Plan was 10,250 MW which has reached 11,447 MW as on January 31st 2008. A capacity addition of 14,000 MW is proposed during the 11th Plan.

Details of estimated potential of grid interactive renewable energy sources are as follows

Target in MW