Piyush Goyal: Govt working on tax sops for renewable energy

Written by ENS Economic Bureau | New Delhi | Updated: Sep 12 2014, 14:25pm hrs
Piyush GoyalUnion Coal and Power Minister Piyush Goyal delivering the keynote address at the Economist India Summit in New Delhi on Thursday. (Express photo)
Union minister for power and coal Piyush Goyal on Thursday said the government is working on a policy for the renewable energy sector to attract investments worth $100 billion within the next five years.

The power ministry is working on ways to provide tax breaks and cheaper loans in the impending policy to motivate prospective investors, Goyal said while delivering the keynote address at the Economist India Summit.

Describing the demand for an anti-dumping duty on solar panels as needless, Goyal said that it would kill the solar mission as it would have led to escalation in tariff from the solar plants. He said domestic solar panel manufacturers have suo motu withdrawn their plea for such a duty.

With Coal Indias trade unions deciding to oppose the move to sell 10 per cent government stake in the company, Goyal said the Union cabinets decision to do so was not a half measure and the government has no desire to fully divest its assets in the company.

However, the unions on Thursday re-affirmed their decision on resorting to a work-to-rule for three days beginning September 18.

Goyal said his ministry has proposed to organise a conference of his counterparts from the South Asian association for regional cooperation (Saarc) nations. On the lines of Prime Minister Narendra Modi reaching out to Indias neighbours during his swearing-in, we look at relationship with an open mind based on the strength of Indias security interests and better economic relations, he said.

Highlighting the cordial relations with the states in sorting out issues impeding generation and transmission of electricity, Goyal reasoned that during his recent interactions with the governments of 19 states, he found that cutting across party lines they extended full cooperation.