After the LED bulb distribution scheme, the government is mulling a similar programme under which it will sell on EMI energy-efficient fans and air conditioners at prices much lower than market rates.
"We will soon come out with highly energy-efficient air conditioners on payment plans, so that you can pay for the air conditioner as you save money," Power Minister Piyush Goyal said addressing a press conference here.
The Minister said that consumers should remove old inefficient air conditioners that consume more electricity. "I don't want them to be used somewhere else," he added.
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Noting that in middle class households, the largest part of electricity consumption is lights and fans, the Minister said, "Fan is the next thing which we are introducing very soon. It will be a cheaper fan in the market and will be 35 per cent more energy efficient."
"State-run Energy Efficient Services Ltd is shortly introducing energy-efficient fans. They have already tendered the fans at Rs 1,000 per unit as against the Rs 1,500 in market today. There will be taxes and other levies but it will be energy-efficient cheaper fans," Goyal said.
The government had started Domestic Efficient Lighting Programme last year under which it has already provided over 7 crore LED bulbs to families through power distribution companies at an installment of Rs 10 per month for each bulb.
The distribution companies charge the EMI through their electricity bills.
Through the bulk tendering, the government has been able to reduce the procurement price of these LED bulbs from Rs 64.41 in January this year from the market rate of Rs 310 in February 2014.
On Environment Ministry's tougher norms for power plants relating to consumption of water, particulate matter, SO2, NOx and mercury, Goyal said, "Environment ministry has given very aggressive challenges or targets. I had a discussion with Environment Minister Prakash Javadekar on this. We will sit together and see what could be done practically."
Ruling out any change in the norms, he said, "We will not change the norms but give more time to comply with norms. It is humanly impossible to comply with the norms within a period of two years. The equipment required to do that is not available in India. We will calibrate it in coming days."
While talking to analysts and investors recently, an NTPC executive had told that the company would have to shell out Rs 20,000 crore to meet the norms of environment ministry which translates in Rs 50 lakh per MW capital expenditure.
The minister said that the Budget document has confirmed
that the government is on its "way to achieving 100 per cent village electrification by May 1, 2018".
In the Coal and Mines sector, Goyal said that the Budget lays special emphasis on conservation, safety and infrastructure in coal mines.
He said that a number of steps taken including increase in allocation for Coal Ministry by 34 per cent from Rs 556 crore to Rs 745 crore and hike in allocation for Ministry of Mines by 12 per cent from Rs 1,083 crore to Rs 1,213 crore.
He said that the conservation, safety and infrastructure development in coal mines increased by 43 per cent from Rs 350 crore to Rs 500 crore.
Besides to provide benefit to domestic aluminium manufacturers, the export duty on other aluminium ores including laterite has been imposed at 15 per cent, he said.
Talking about the huge boost provided in the Budget to domestic LED companies, Goyal counted a number of steps taken.
These include customs duties reduction on parts to promote domestic value addition.
The budget has provided for reduction in Basic Customs Duty (BCD) from 10 to 5 per cent for all parts used to manufacture LED luminaries, drivers etc. Thereby promoting domestic value addition.
On importing semi-finished inputs for LEDs that includes driver assembly and other such products, BCD of 5 per cent is levied.
This will make the LED products of those manufacturers who assemble the LEDs in India cheaper whereas those who are importing semi-finished products would witness increase in costs, he said.
The excise duties on all parts used in the manufacture of LED lights or fixtures reduced to promote domestic manufacturing, he added.
