Funds announced for climate missions

As the threats of climate change becomes more visible, the government on Monday announced allocation of much-needed funds for the eight national missions envisaged in the National Action Plan on Climate Change unveiled by Prime Minister Manmohan Singh.

Presenting the Union Budget 2009-10, finance minister Pranab Mukherjee said, "Necessary funds are proposed to be allocated for the missions that are being launched following the NAPCC unveiled last year."

The exact amount will be notified later.

Stressing that mitigation and adaptation remain a major focus area, Mukherjee said the missions represent a multi-pronged, long-term and integrated approach to tackle the menace.

"The NAPCC outlines our strategy to adapt to climate change and enhance the ecological sustainability of our development path," he added.

In yet another environment-friendly measure, the government has reduced basic custom duty on green fuel also known as bio-diesel fuel from 7.5 per cent to 2.5 per cent at par with petrol-diesel.

"Also bio-diesel obtained from vegetable oils and used for blending with petrol-diesel is currently exempted from excise duty.

"I now propose to fully exempt petrol-diesel blended with bio-diesel from excise duty," Mukherjee said hoping that the announcement would bring smile on the faces of the green brigade.

To boost renewable energy sources, which is presently five per cent of the total power generation in the country, the government has reduced the basic customs duty of a vital component used in wind operated electricity generators.

"It is imperative that the contribution of new and renewable energy sources of power is enhanced if we have to successfully combat the phenomenon of global warming and climate change.

"I am reducing the basic customs duty on permanent magnets, a critical component for wind operated electricity generators, from 7.5 per cent to 5 per cent," the Finance Minister said.