National Clean Energy Fund

National Clean Energy Fund

-The Cabinet Committee on Economic Affairs on 06 April approved constitution of an 'National Clean Energy Fund' (NCEF) in the public account of India along with the guidelines as well as modalities for approval of projects to be funded from the Fund.

Background:

-The provision for creation of National Clean Energy Fund was included in the Finance Bill 2010-11.

-Its objective was to invest in entrepreneurial ventures and research in the field of clean energy technology.

-The Central Board of Excise and Customs consequently notified the Clean Energy Cess Rules 2010 under which producers of specified goods namely raw coal, raw lignite and raw peat were made liable to pay Clean Energy Cess.

Constitution of the Clean Energy Fund:

The projects and schemes eligible for financing under the National Clean Energy Fund will be approved by an Inter Ministerial Group (IMG) consisting of following members:

1. Finance Secretary - Chairperson
2. Secretary (Expenditure) - Member
3. Secretary (Revenue) - Member
4. Representatives from Ministries of Power, Coal, Chemicals & Fertilizers, Petroleum & Natural Gas, New & Renewable Energy and Environment & Forests.

Implementation:

-The National Clean Energy Fund will be used for funding research and innovative projects in clean energy technologies.

-Any project/scheme for innovative methods to adopt to clean energy technology and research & development shall be eligible for funding under the NCEF.

-Such projects may be:

1. Sponsored by a Ministry/Department of the Government
2. Submitted by individual/ consortium of organizations in the government/public sector/private sector in the form of loan or viability gap funding, as the IMG deems fit on case to case basis.

-Government assistance under the NCEF shall in no case exceed 40% of the total project cost.