According to reports, while emphasising the economic progress in the Budget, Prime Minister Narendra Modi led government also ensured that development should be as green as possible.
The government is launching a scheme for Faster Adoption and Manufacturing of Electric Vehicles. Finance Minister Arun Jaitley proposes an initial outlay of Rs 75 crore for the scheme in 2015-16, which was welcomed by electric vehicle makers.
Further, the concessional excise duty of 6 per cent on specified goods for use in manufacture of electrically operated vehicles and hybrid vehicles, presently available up to this March, is being extended by another year.
Reacting to the development, Society of Manufacturers of Electric Vehicles (SMEV), Director-Corporate Affairs, Sohinder Gill termed the allocation towards promoting EVs and supporting charging infrastructure and R&D investments as a welcome step.
Emphasising the need to generate more electricity from clean energy sources, the government announced a massive renewable power production target of 1,75,000 mw in the next seven years.
Of the total 1,75,000 mw proposed to be tapped by 2022, solar power will have a lion’s share of 1,00,000 mw, followed by 60,000 mw from wind energy, 10,000 mw from biomass energy and 5,000 mw from small hydro projects, Jaitley said in his proposals.
At present, the solar power generation capacity of the country is about 3,000 mw. Small hydro power projects are plants with up to 25 mw generation capacity. The Finance Minister said the power sector had witnessed rapid growth due to efforts of the government despite uncertainty on the coal front.
The 2014-15 Economic Survey said country’s renewable energy sector will generate business opportunities of a whopping Rs 10 lakh crore in the next five years. India’s total renewable power installed capacity as on December 31, 2014 has reached 33,800 MW, wind energy continues to dominate this share accounting for 66 per cent of installed capacity followed by biomass, small hydro power and solar power. The country’s National Solar Mission is being scaled up five-fold to 1,00,000 MW by 2022.