Budget 2009-2010 – forgets the much talked about solar industry.

Wait on for National Solar Mission

The first budget for the second term of the UPA government, presented by the finance minister Pranab Mukherjee, clearly missed out to cheer anyone from the solar industry. Customs duty on biodiesel and for wind turbine manufacturers has been reduced but there was no mention of any investment in the much talked about solar industry in the latest budget.

The budget lowers customs duty from 7.5% to 5% on equipments for wind energy and reduction from 7.5% to 2.5% on bio diesel. Uncertainly, India's plan to invest huge amount in solar energy over the next 20 years was not mentioned in the budget.

On one hand where the newly elected US President Obama announced huge investments in solar energy as part of the $150bn clean tech investment just within few days of taking control, the Indian government again lacks behind. People were actually waiting to hear something about the National Solar Mission in the budget, which was one of the leading missions in the National Action Plan on Climate Change announced by Prime Minister on 30th June last year.

Prime Minister, Manmohan Singh announced last year that a National Action Plan on Climate Change would be undertaken. National Solar Mission is the one of the 8 missions of the plan which aims to promote use of solar energy in the country. Its ultimate objective is to make solar competitive with fossil-based energy options. It aims to increase the production of photovoltaics to 1000 MW/year; and at least 1000 MW of solar thermal power generation.

Looking at people interest and awareness spread last year, this budget could have taken the opportunity to attract green investments, but has not done that. However, Finance Minister Pranab Mukherjee assured green groups that initiatives under the National Action Plan on Climate Change will be covered under the budget, he admitted that an exact figure would not be decided until the end of the year.

The Budget has also mentioned nothing about the other critical initiatives that are in the pipeline to promote energy efficiency in power generation, renewable energy technology programmes, and creating appropriate capacity at different levels of government.

Source: SolarIndiaOnline.com