'Priority lending to RE projects should be considered'

"The Union Ministry of Finance and Ministry of Non Renewable Energy and the Planning Commission should extend the Generation Based Incentive Scheme with an incentive of INR 1.2/KWh with no cap. (Currently INR 0.5/KWh with a cumulative cap of INR 62L per MW over 10 years).

Tax holidays under section 80IA should be continued in 2012-13 and in DTC as well. 

This

is essential to promote investment in essential infrastructure such as Power. Any additional burden will only pass on to the end consumer.

Priority lending to RE projects should be considered. Also, Government could consider a Special Purpose Vehicle Finance/Guarantee lending to RE sector including Transmission infrastructure for RE Projects"

The writer is chairman and managing director, Gamesa India