India's Ministry of Finance issued a report saying that the Indian Cabinet Economic Affairs Committee agreed on the 6th to establish the National Clean Energy Fund and related project approval rules to provide financial support for clean energy projects and research in India.
According to regulations, the fund will provide funds for clean energy technology R&D and innovative projects. Relevant projects and research may be led by government departments, but also by individuals and corporate organizations. The Clean Energy Fund will provide financial support that does not exceed 40% of the total cost of the project. A team of senior officials from the Indian Ministry of Finance, Ministry of Power, Coal, Chemicals and Fertilizers, Oil and Gas, New Energy and Renewable Energy, and Environment and Forests is responsible for project approval.
India proposed the establishment of a national clean energy fund plan in early 2010. The Central Commission for Consumption Tax and Customs of India announced in June last year the rules for the collection of clean energy costs, and levies 50 rupees (approximately US$1.13) of clean energy costs per ton of coal consumption to build the fund.
In the fiscal year 2010 to 2011 ending March 31 this year, India has collected a total of 31.24 billion rupees (approximately US$707 million) of clean energy costs. It is expected that the accumulated amount of this tax will exceed INR 65 billion in the current fiscal year. (About $1.471 billion).
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