State mulls cess to promote green energy

Karnataka has proposed ‘green cess’ on industries to raise funds for promoting the renewable energy sector and has identified four locations that could be developed as solar cities.

The state government hopes to raise around Rs 50 crore to Rs 60 crore from the initiative, for which it would seek the Karnataka Electricity Regulatory Commission’s approval, Additional Chief Secretary (Energy Department) K Jairaj said. This “seed money” would be utilised for the development of renewable energy, incubation of projects and enhance capabilities on evacuation of wind power in districts such as Chitradurga, Gadag and Davanagere, he said.

The initiative is proposed to be taken as there is no special fund for development of the sector from the State government; incentives only come from Government of India. “It (green cess) is an attempt to meet some of our requirements (in the renewable energy space),” Jairaj said on the sidelines of a seminar on renewable energy options in hotels, hospitals and technical institutions here.

Managing Director of the Karnataka Renewable Energy Development Limited (KREDL) H G Shivananda Murthy, said the Union Ministry of New and Renewable Energy has approved the state’s proposal to promote Mysore and Hubli-Dharwad as solar cities. Now, Belgaum and Shimoga are also proposed to be promoted in a similar way, he added.