The government has asked all central public sector companies to set up renewable energy projects or voluntarily procure energy credits, as part of efforts to boost sustainable development.
"The scope of the Energy Management Programme has been expanded by including Renewable Energy as a specific activity to be pursued by central PSEs [Public Sector Enterprises]," an official statement said today.
The Ministry of Heavy Industries and Public Enterprises has asked all CPSEs to set up renewable energy projects or voluntarily purchase Renewable Energy Certificates (RECs).
Generally, a REC is equivalent to one mega watt of electricity.
In this regard, an office memorandum was issued by the Department of Public Enterprises on December 19.
"This decision, which will become a part of the MoUs signed by the CPSEs and the administrative Ministries/ Departments is expected to accelerate the growth of the emerging market for RECs in the country and make it a valuable business model," the statement said.
Coal India, IOC, NTPC, ONGC, SAIL and BHEL are among the major central public sector entities.
As per the statement, the CPSEs can implement carbon management plan by participating in any of the missions under the National Action Plan under Climate Change. They can also purchase RECs to offset their carbon footprints.
Ministry of New and Renewable Energy already provides incentives for setting up of the renewable energy projects.