Government keen on Clean Energy

The Union Budget 2010-11 presented by the Finance Minister Shri Pranab Mukherjee in the Lok Sabha today, provides relief measures to promote clean environment. Clean energy cess on coal produced in India as well as on the imported, will be levied at a rate of Rs. 50 per tonne. The measure is aimed at building the corpus of the National Clean Energy Fund. A concessional custom duty of 5% to machinery instruments, equipments and appliances etc. required for the initial setting up of photo voltaic and solar thermal power generating units have been proposed. They will also be exempted from the central excise duty. Ground source heat pumps used to tap geo-thermal energy have been exempted from basic customs duty and special additional duty.

Central excise duty on LED lights which are highly energy efficient source of energy has been reduced from 8% to 4% at par with compact fluorescent lamps.

To remedy the difficulty faced by manufacturers of electric cars and vehicle in neutralizing the duty paid on their inputs and components, a nominal duty of 4% on such vehicles has been imposed. Some critical parts of sub-assemblies of such vehicles exempted from basic customs duties and special additional duty subject to actual user condition. These parts would also enjoy a concessional CVD of 4%.

A concessional excise duty of 4% has been provided to 'Soleckshaw, a product developed by CSIR to replace manually operated rickshaws. Its key parts and components will be exempted from custom duty.

To encourage the use of bio-degradable materials, the import of compostable polymer has been exempted from basic customs duty.

Source : Equity Bulls

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