Monday, February 17, 2014: In the wake of the continuing power shortage in the country, industry heads hope for some positive reforms by the government of India. The much awaited interim budget 2014, is likely to help in promoting energy efficiency-demand side management and renewable energy.
In a Myiris report, NK Ranganath, managing director at the Grundfos India said, “Priority lending to Renewable Energy projects and tax reduction on solar power equipment should be considered. Independent power producers are facing issues with fuel shortages for which policies have to be tweaked and the process simplified. Also the terms and conditions from the Government have to be changed in order not to be so one sided that power producers cannot get the support of funding institutions.”
The minimum energy efficiency norms if made mandatory with Customs duty/excise duty relaxation on manufacturing energy efficient products will promote manufacturing of energy efficient products in the country. “The water efficiency like energy efficiency is very important, perhaps more than energy as the country faces the imminent danger of being water starved. Products that are water efficient, example cisterns that use only 2 or 3 litres of water and equipment that help recycling grey water or sewage should also have a lower tax and duties,” added Ranganath.
Presently, the government does not have specific tax benefits or policies for lowering the high cost of in green buildings, such as, higher levels of depreciation and tax breaks. The government is expected to extend subsidies and tax benefits for eco-friendly projects, which will interest developers to build green projects and help in lowering the carbon emissions. India has set a target to lower its carbon emission by 24 per cent by 2020. The government is expected to make budgetary allocation for the renewable energy sourcing.
