Stresses on green fine print

Budget 2009-10 is green in bits and pieces, but does not focus on the big picture. It promises to provide adequate funding to eight national missions, which were announced under the National Action Plan on Climate Change last year, but refers to neither specific monetary allocation nor timeline. "It's a lukewarm response to the challenges facing the country as far as the environment is concerned," says Leena Srivastava, executive director, Teri.

While seeking to encourage alternative sources of energy to fight climate change, the budget proposes to reduce customs duty from 7.5% to 5% on magnets used in 500 kw-plus generators employed in wind energy sector. It also proposes reducing basic customs duty on biodiesel from 7.5% to 2.5%, and fully exempting excise duty on high-speed diesel blended with up to 20% biodiesel. But the Budget doesn't take a holistically at renewables. "For example, if India Infrastructure Finance Company had been given a role in refinancing of renewable energy projects, it would have given a fillip to the sector," says Venkat Sundaram, MD, Epuron Renewable Energy.