According to reports, to boost clean and renewable energy, Punjab government today announced a slew of incentives under the New and Renewable Energy Policy, 2012. The government had given the incentives to meet the increasing demand for clean energy and reduce the burden on conventional energy resources, Non-Conventional Energy Minister Bikram Singh Majithia said.
Giving details on the incentives, the minister said the government has decided to provide 50 per cent exemption on electricity duty on the power used during the construction period of renewable energy projects. 100 per cent entry tax exemption would be given to the project holder in respect of all supplies for its setting up. VAT exemption on equipment required for these projects would be given and the state would provide banking facilities to renewable energy investors, he said.
The minister also said government land, if available, would be provided on lease for a period of 38 years with no CLU or any other fee. He hoped that with these incentives, Punjab would be able to promote investment through PPP in the areas of mini hydel projects, co-generation, biomass, solar energy and wind power, for faster development of renewable energy. The state government had set a target of reaching 1000 MW from non-conventional energy projects till 2017, he said.
To attract the big players in biomass sector, Punjab would be offering highest tariff in the country at Rs 5.83 per unit to purchase power generated by biomass plants in the state. Presently Andhra Pradesh offers Rs 5.18, Haryana Rs 5.65, Maharashtra Rs 5.74, Rajasthan Rs 5.16, Tamil Nadu Rs 5.12 and UP Rs 5.24 per unit to purchase such power, he added.