Green Energy Initiatives Launched by the Government
- Reduction of corporate tax: At the moment, businesses in the renewable energy sector rely primarily on these indirect state incentives because there aren’t any clear rules or policies yet protecting the renewable energy market. Indian businesses will be more competitive in the international market due to the corporation tax rate now being among the lowest in the world. They’ll want to stay and grow their business in India. A 15% personal income tax rate is an option for new domestic companies that only function in the manufacturing sector and were founded on or after October 1, 2019. Companies that commence manufacturing on or before March 31, 2023, are eligible for this tax benefit. Such businesses pay an effective tax rate of 17.01%. This action would benefit not only India’s manufacturing industry but also all commercial activities there and help the industry as a whole to recover.
- Enhance land purchase: Private businesses currently find it highly challenging to purchase land in India. Private companies should now experience a shift in this due to the government’s efforts to alter the mechanism used for land acquisition. The so-called “plug and play” concept will replace the current mechanism for awarding renewable energy projects in the future, which should reduce significant risks. According to the “plug and play” plan, the government will essentially buy the land and manage the initial and most crucial permissions later. Following that, the projects and land that have been acquired will be distributed to private enterprises in accordance with the recognized bidding process.
- Quintessential power purchase Agreements: The government now considers the national standardization of all power purchase agreements (“PPAs”) for solar and wind energy. The new power purchase agreements should include a stiff penalty if the state breaches its responsibilities or defaults, the Ministry of New and Renewable Energy announced. Letters of credit should also be accepted as a form of payment.
Green Economy
Green Economy: A green economy is a process of fostering social and environmental sustainability via the encouragement of public and private investment in infrastructure. The green economy is significant because it promotes low-carbon, sustainable economic growth and guarantees that natural resources will continue supporting our well-being by providing resources and environmental services. At their core, economies are made up of laws and standards that reward some behaviors and penalize others. Our economies currently encourage excessive consumerism, weaken social ties, and deplete natural resources. But this is just how our economies have developed to work; it is neither inevitable nor necessary.
Investments in renewable energy, including solar power, onshore and offshore wind power, hydrogen, electric vehicles, and energy-efficient housing, indicate a green economy. Sustainable development is not replaced by the idea of a “green economy,” but rather, a new emphasis is placed on the economy, investment, capital, infrastructure, jobs, skills, and favorable social and environmental results.
In this article, we will learn about Green Economy, its principles, primary focuses, initiatives launched by the government, strategies to enhance green economy, advantages etc.
Table of Content
- Guiding Principles of the Green Economy
- Primary Focuses of the Current Green Economy
- Green Economy Transition’s Business Opportunities
- Green Economy Global Initiatives
- Partnership for Action on Green Economy (PAGE)
- Green Energy Initiatives Launched by the Government
- Strategies for Achieving a Green Economy
- Role of Technology in Green Economy
- Advantages of Green Economy
- Difficulties in achieving Green Economy
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