Budget 2019-20: Pollution control in focus, Env Ministry gets Rs 2,954 cr

The Centre on Friday increased the allocation for Environment Ministry from last fiscal by 10.4 per cent to Rs 2,954.72 crore for 2019-20 in what was termed as a "green budget" by Prime Minister Narendra Modi with several initiatives for promoting electric vehicles, reducing air pollution and encouraging afforestation.

Union Finance Minister Nirmala Sitharaman, in her maiden Budget speech, allocated Rs 460 crore for pollution control schemes including National Clean Air Programme (NCAP) with a vision for "pollution-free India with green Mother Earth and blue skies".

The revised budget for pollution control schemes in the last fiscal was a mere Rs five crore.

The finance minister proposed lowering of the GST on electric vehicles (EVs) from 12 to five per cent. Also to make them affordable to consumers, the government will provide additional income tax deduction of Rs 1.5 lakh on the interest paid on the loans taken to purchase EVs, Sitharaman said.

Her announcement comes close on the heels of Niti Aayog proposing to migrate to full electric vehicles for two-wheelers of engine capacity of up to 150 cc and three-wheelers by 2023 and 2025 respectively.

The finance minister said that already Rs 10,000 crore has been approved on April 1, 2019, to encourage faster adoption of EVs in the country under the FAME II scheme, which aims to encourage faster adoption of EVs by right incentives and charging infrastructure.

On increasing green cover, she said that besides using funds available under various schemes, the government will explore the possibility of using additional funds available under the compensatory afforestation fund management and planning authority (CAMPA).

Talking about clean energy, she said the government will use the LED bulb mission to promote the use of solar stoves and battery chargers in the country.

"For good quality of life and ease of living, maintaining a cleaner environment and ensuring sustainable energy use is vital... 35 crore LED bulbs have been distributed under UJALA Yojana leading to cost saving of Rs 18,341 crore annually," Sitharaman said.

The minister also proposed to expand the Swachh Bharat Mission to undertake sustainable solid waste management in every village.

"We must not only sustain the behavioural change seen in people but also harness the latest technologies available to transform waste into energy. I now propose to expand the Swachh Bharat Mission to undertake sustainable solid waste management in every village," she said