SEZ for renewable energy equipment on cards

The Centre has proposed to set up a special economic zone (SEZ) for manufacture of renewable energy equipment, according to Vilas Muttemwar, Union minister of non-conventional energy sources (independent charge).

The minister said the proposed SEZ could reduce the cost of manufacturing as it would offer comprehensive infrastructure facilities and development of new technologies, besides duty benefits.

Addressing the 'Green Power 2006', a two-day national conference-cum-exposition on renewable energy, organised by the Confederation of Indian Industry (CII), here he said that the government was receiving favourable response for the proposed project from prospective investors, both from India and abroad.

However, he didn't give details about the location where the SEZ would be set up.

Urging the industry to send its feedback on the renewable energy draft policy posted on the ministry's website, he said that it would be aligned with the integrated energy policy.

The ministry had the mandate to meet the energy requirements of 25,000 remote villages in the country through various renewable devices, he said.

The government would aim at doubling the installed capacity of solar water heating systems every five years. Noting that one water heating system was capable of conserving 400 units of electricity or the energy equivalent to a barrel of oil, Muttemwar said the government was planning to install 40 million units by 2020.

Although the management of municipal waste was a serious matter of concern for civic authorities, it had the potential to generate 5,000 Mw of power, besides reducing environmental pollution, he said.

The government would focus on 100-odd large municipal corporations in the country where most of the waste was being generated to produce 1,000 Mw power, he said, adding the government would target 10 per cent power generating capacity from renewables by 2010.

V Subramanian, secretary, ministry of non-conventional energy sources, said the cost of setting up a renewable energy project was rather high in India and the renewable energy sector had not achieved economies of scale.

He said while the ministry was in favour of solar energy products, the manufacturers would not see the advantages in creating products, increasing the volume and building the distribution network.

Ramesh Kymal, chairman, renewable energy council, CII-Godrej GBC, said the cumulative investment in renewable energy sector was about Rs 25,000 crore. The Centre's plans to have10,000 mw additional capacity by 2012 offered a business potential of about Rs 50,000 crore.

He said that the industry was seeking priority status for renewable energy, which would pave the way for accelerating the renewable energy development in the country.

K Krishnan, chairman, Malavalli Power Plant (P) Ltd, said an SEZ for renewable energy equipment could be a catalyst for development of cutting-edge technologies and low-cost manufacturing.