Increasing power generation

The Indian government led by Prime Minister, Narendra Modi has announced a number of measures to increase power generation especially on promotion of clean energy in the country. Indian Finance Minister Arun Jaitley in his budget speech unveiled a new energy strategy which includes schemes such as setting up ultra mega solar power projects, developing solar parks on canal banks, constructing transmission corridors for renewable energy and energising 100,000 solar power-driven agricultural pump sets and water pumping stations.
India's capacity addition for the 12th Plan period is estimated at 88537 MW. Against this target 38583 MW capacity has been added till April 2014 which constitutes 43.6 per cent of the target envisaged in the plan. To encourage setting up of clean energy projects, the Indian Finance Minister announced that the BJP government would extend excise duty exemptions for raw materials for solar and wind power projects.
The government also proposed to take up ultra mega solar power projects in Rajasthan, Gujarat, Tamil Nadu, and Ladakh in the held J&K. Indian Finance Minister announced in his speech that developing renewable energy will also help reduce dependence on coal, which is in short supply domestically, requiring imports of the mineral to fuel most of India's power plants. India has a power generation capacity of 245,394 megawatts (MW), of which only 13%, or 31,692MW, is contributed by renewable sources.
India has also increased the quantum of clean energy cess which is currently levied on coal, peat and lignite from Rs 50 per ton to Rs 100 per ton and expanded the scope of its usage to include financing and promoting clean environment initiatives and funding research in the area of clean environment.
To develop renewable sources of energy, India will exempt from excise duty: (i) EVA sheets and solar back sheets and specified inputs used in their manufacture; (ii) solar tempered glass used in the manufacture of solar photovoltaic cells and modules; (iii) flat copper wire for the manufacture of PV ribbons for use in solar cells and modules; (iv) machinery and equipment required for setting up of a project for solar energy production; (v) forged steel rings used in the manufacture of bearings of wind operated generators; and ;(vii) machinery and equipment required for setting up of compressed biogas plants (Bio-CNG).
The new Indian government, in its party manifesto had made energy security a part of its poll plank. India, which is dependent on imports to meet its energy demand, has an energy import bill of around $150 billion which is expected to reach $300 billion by 2030. In addition, the budget provided a concessional basic customs duty of 5% on equipment for setting up compressed biogas plants.
The Indian Finance Minister maintained that supply of power continues to be a major area of concern for the country. Therefore, instead of annual extensions, he proposed to extend 10 year tax holiday to the undertakings which begin generation, distribution and transmission of power by March 31, 2017. He hoped that the stability in policy will help the investors to plan their investments better. To promote wind energy, India announced reducing basic customs duty from 10 percent to 5 percent on forged steel rings used in the manufacture of bearings of wind operated electricity generators.