Government aims for 'green' development

The government is committed to make development process as green as possible, according to finance minister Arun Jaitley. “Our de-facto ‘Carbon Tax’ on most petroleum products compares favourably with international norms. With regard to coal, there is a need to find a balance between taxing pollution, and the price of power,” said Jaitley in his Budget speech today in the Parliament.
 
To finance clean environment initiatives, Jaitley has proposed an increase in clean energy cess from Rs 100 to Rs 200 per metric tonne of coal, etc. In addition, the government is also looking at renewable energy as a major source to power India’s growth. The Ministry of New and Renewable Energy has revised its target of renewable energy capacity to 1,75,000 MW till 2022, comprising 1,00,000 MW solar, 60,000 MW wind, 10,000 MW biomass and 5,000 MW small hydro, he added.
 
As a part of this exercise, the government is launching a scheme for faster adoption and manufacturing of electric vehicles. For this, FM has proposed an initial outlay of Rs 75 crore for the scheme in 2015-16. He also proposed concessions on customs and excise duty available to electrically operated vehicle and hybrid vehicle extended up to March 31, 2016.
 
Besides, Jaitley said that services by common affluent treatment plant will be exempt from service tax. This should encourage industries to establish affluent treatment plant to ensure better environment and also aid the technology & equipment providers such as Thermax, Praj Industries, etc.
 
In addition, Jaitley has proposed an increase in excise duty on sacks and bags of polymers of ethylene (other than for industrial use) from 12 per cent to 15 per cent. He also mentioned an enabling provision to levy Swachh Bharat Cess at the rate of 2 per cent or less on all or certain services if need arises.