You are here: Home » Companies » News
Business Standard

Coal cess to boost clean energy, say CEOs

Big push for renewables will boost equipment makers in both wind and solar power producers

BS Reporters  |  Mumbai/Delhi 

Union finance minister Arun Jaitley's budget announcement to double the green energy cess on coal to Rs 200 per tonne will boost renewable energy generation, industry CEOs have said. The government has set an ambitious target to achieve 175,000 megawatt (Mw) of green energy by 2022 including one lakh Mw of solar power, 60,000 Mw of wind energy, 10,000 Mw of biomass and 5000 Mw of small hydro projects.

The big push for renewables will boost both equipment makers in both wind and solar and power producers. India's current renewable generation is around 34,000 Mw. Solar generation in India is around 3,000 Mw and manufacturers of solar photovoltaic modules are largely catering to export market because of limited generation in India. The government's push for clean energy will also help manufacturers of solar inverters such as ABB and turbine makers including Suzlon. Read our full coverage on Union Budget “Increasing the coal cess from Rs. 100 to Rs 200 provides impetus to clean energy,” said Suzlon Group chairperson Tulsi Tanti.

He added that government should also provide interest rebate to for investing in captive renewable power. Doubling of coal cess should allow the government to strengthen the grid and further incentivise the clean energy sector, said Sumant Sinha, Chairperson, ReNew Power. The cess is collected as National Clean Energy Fund and is disbursed for renewable energy based initiatives and power projects. The additional cess would fetch Rs 12,000 crore annually in the NCEF pool. The total amount in NCEF till yet is close to Rs 40,000 crore. The sad part however is that the disbursal of money is slow. Officials in the ministry of new and renewable energy have however raised this concern on several occasions that the projects to be funded from NCEF are a huge waiting list. In the past three years of its existence, projects totalling Rs 12,000 crore were sanctioned to be funded through the money collected in NCEF but the ministry has received partial amount, in bits and parts.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, March 03 2015. 00:37 IST
RECOMMENDED FOR YOU