Finance Bill 2010

The Finance Bill 2010-11 provided for the creation of a corpus called the National Clean Energy Fund, to invest in entrepreneurial ventures and research in the field of clean energy technologies. Subsequent to the budget announcement, the Central Board of Excise & Customs (CBEC) issued a notification dated June 22, 2010 to notify the Clean Energy Cess Rules, 2010. The cabinet Committee on Economic Affairs has approved constitution of a '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. An Inter Ministerial Group has been constituted to approve the projects/schemes eligible for financing under the National Clean Energy Fund, headed by the Finance Secretary and including representatives from Ministries of Power, Coal, Chemicals & Fertilizers, Petroleum & Natural Gas, New & Renewable Energy and Environment & Forests. 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. Projects may be government sponsored or submitted by the private or public sector. Projects may take the form of loan or viability gap funding. Government assistance under the NCEF shall in no case exceed 40% of the total project cost. The IMG will identify/appoint appropriate professional agencies to monitor progress of NCEF funded projects.