According to the Ministry of New and Renewable Energy (MNRE), a budgetary provision of Rs. 253.06 crore has been made for research and development in new and renewable energy for the first four years of the 11th Five Year Plan. Against this provision an expenditure of Rs. 199.74 crore has been incurred on R&D in renewable energy sector during the last three years and the current year (upto February, 2011).
The 11th Plan has a special emphasis on efficiency improvement and cost reduction of new and renewable energy systems and devices. The Government has launched Jawaharlal Nehru National Solar Mission (JNNSM) with the objective to create conditions through rapid scale-up of capacity and technological innovation to drive down costs towards grid parity. With the current level of fiscal and financial incentives the other renewable power sectors such as wind, small hydro, biomass cogeneration/ combustion and biogas based power have nearly achieved grid parity. However, R&D and technology demonstration projects are promoted to make it still better, specially for low capacity systems.
Most recently, as Panchabuta has reported, the Ministry of New and Renewable Energy India has mentioned that they would provide incentive of upto 50% project cost for for projects seeking to demonstrate how to produce electricity from ocean tides.