Chennai, June 14: The Union Budget for 1998-99 has received more brickbats than bouquets. But the non-conventional energy sector is very optimistics and showering bouquets on the Union finance minister Yaswant Sinha for his liberal gesture to the industry.The Budget allocation for the ministry of non-conventional energy sources (MNES) has been increased by 103 per cent from Rs 190 crore to Rs 403 crore.
It is expected to take care of any delay in the international assistance in the pipeline for the lending programmes of Indian Renewable Energy Development Agency Ltd (IREDA).
External assistance for IREDA comes from the World Bank, Asian Development Bank, Global Environment Facility and from the aid agencies of Japan, Denmark, Germany, and Switzerland.
Started in 1987 as the lending agency of MNES, IREDA is now recognised as a non banking financial company (NBFC) by RBI. So far it has got as grant in aid or soft loan from World Bank and other agencies $ 419 million, DM 120 million and 28 million DutchGuilder.
International assistance in the pipeline is from Germany's KfW, Japanese OECF and the World Bank.
IREDA has made a cumulative sanction of 966 projects involving loan commitment of Rs 1934.24 crore and cumulative disbursement of Rs 903. 24 crore for setting up generation capacity of over 1000 mw. It provides project financing up to 85 per cent and equipment financing up to 90 per cent at interest rates ranging from zero to 16 per cent a year.
IREDA has set a Ninth Plan target of sanctioning Rs 3779 crore and disbursing Rs 2703 crore for setting up an additional renewable energy capacity of 1050 mw.
By 2010 IREDA has set a sanction target of Rs 16,100 crore and disbursement of Rs 13,800 crore for setting up 2990 mw generation capacity from renewable energy sources like wind, solar, small hydro, biomass and co-generation.
``The government's interest in tapping the enormous potential in renewable energy sources by increasing the outlay in the Budget provision is a crucial step in theirdevelopment. It is also significant in the context of possible delay in external assistance, owing to the sanctions, especially from the World Bank'', S Rajendran, director, Non-conventional Energy Equipment Manufacturers' Association (NEEMA), has said.
The increase in additional customs duty is expected to support indigenous manufacturers of wind power equipment.
The Budget has also provision to reduce the import duty from 30 per cent to 20 per cent for the solar cells. ``This will also help the manufacturers of solar energy-based products and promotion and exploitation of solar energy sources'', S Rajendran said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
