Biomass - Energy Toolbox

Policies for Renewable Energy in India

Currently, some 6,050 MW (5.5%) of the country's power is coming from renewable sources. It has been estimated that the potential would be as high as 80,000 MW which could come from such sources and official policy is to see at least an increase of 10,000 MW by 2012. There is now positive support for foreign investment in this sector and a Foreign Investment Promotion Board is in operation chaired by the Secretary for the Department of Industrial Policy and Promotion. Among the policies being followed are the provision a five year tax holiday for projects established to developed renewable energy and the provision of soft loans through IREDA.
View Paper [PDF 310Kb]

The National Small Industries Corporation (NSIC) within the Ministry of Industry and Commerce provides marketing and financial services to entrepreneurs involved in renewable energy and includes the operation of a Technology Transfer Centre (TTC) which can provide technical assistance as required.

The Ministry of Non- Convential Energy Sources is implementing a National Biomass Gasifier Programme and in mid 2005 a new programme on Biomass Energy and Co-generation in Industry was announced to encourage the wider use of biomass resources within the country. Gasifiers in the range of 5kW - 1MW are already widely manufactured within the country. The new programme provides a series of subsidies for capital investment with for example Rs 8.00 lakhs/100kWe for 100%producer gas operating system linked to an operational gasifier.

A summary paper on Indian energy policy [PDF 69Kb] has been prepared by TERI, supported by various annexures. It can be seen that the Indian and State Governments are strongly supporting the need for private investment in the energy sector and details of this encouragement is provided.

Supporting Annexes

Detailed information on biomass policies/programmes/projects in India.
View Annex [PDF 92Kb]

Case Studies of biomass projects in India
View Annex [PDF 1.2Mb]