Indian Union Budget: Increase for Renewable Energy Sector

India continued its initiative for ecologically sustainable growth by increasing the renewable energy budget by 61% in the Union Budget 2010-2011 presented earlier this year. The budget was increased to Rs 1,000 crore (US$ 225,098,480)¹ from Rs 620 crore (US$ 139,561,057)¹ signaling the government’s continued commitment to popularizing the use of alternate sources of energy in the country.

The Union Budget 2010-2011 also included the following notable concessions:

• Machinery required for the initial setup of photovoltaic and solar thermal power generating units has been exempt from central excise duties (a tax levied on a good produced for sale in India) while a concessional customs duty of 5% has been imposed on the import of any such equipment;
• Central excise duty on LEDs (Light Emitting Diodes), an efficient source of lighting, has been reduced from 8% to 4%, resembling the prevailing duty on Compact Fluorescent Lamps; and
• A complete exemption from central excise duty has been provided to electric cars and vehicles that offer an eco-friendly alternative to petrol or diesel vehicles.

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1. At 1 US$ = 44.425 Indian Rupees  

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