The Renewable Energy Ministry has sought an increased budgetary allocation of over Rs 10,000 crore to meet its ambitious target of 175 GW green energy capacity by 2022. “This time, we have sought an increased budget allocation of over Rs 10,000 crore for the MNRE (Ministry of New and Renewable Energy) because of the various schemes which have taken off,” an official in the ministry said. He further said the budgetary allocation of around Rs 4,500 crore given to the ministry last year was not sufficient. “Different schemes which have taken off are Viability Gap Funding of the MNRE and green energy corridor,” the official said.
The government will present the Budget for 2016-17 on February 29. The government has ambitious plans for deployment of 175 GW renewable power capacities by 2022, including 100 GW of solar and 60 GW of wind, which may require investment of around USD 150 billion in the next seven years. In December, a Parliamentary panel had said that inadequate budget allocation may adversely impact the target of 175 GW renewable energy capacity by 2022 and had expressed concerns over no mention of financial requirement. Besides, it said, sufficient thrust may be provided to ensure that paucity of funds does not come in the way of revised and ambitious development plans in the sector. The panel had also expressed concerns about the reduced budgetary allocation made for 2014-15 and suggested the MNRE to pursue with the Finance Ministry for more allocation at Revised Estimate (RE) stage.