Friday 31 July 2015

National Clean Energy Fund (NCEF)


  • proposed in 2010-11 for funding research and innovative projects in clean energy technology
  • Applicable on domestic + imported coal. 
  • expects to collect Rs 10,000 crore under the Clean Energy Fund by 2015. 
  • So far not declared, how they are going to use this money. 
    • Rs 200 crore proposed for environmental remediation programmes
    • Rs 200 crore for the Green India Mission in 2011-12.

Why was it introduced?

  • pollution level - alarming proportions. 
  • principal of a “polluter pays” 
  • positive thrust for development of clean energy. 
  • to fund the entrepreneurial ventures and research towards the clean energy development.
How it is financed?

  • cess on coal produced or imported 
  • Rs.50 per tonne of coal --> increased to Rs 200 from recent budget (2015)

Funding under the NCEF

  • Any project/scheme for innovative methods to adopt to clean energy technology and research & development shall be eligible
  • The projects fields eligible are: 
    • solar, 
    • wind, 
    • tidal, 
    • geothermal, 
    • Silicon manufacturing, 
    • coal gasification, 
    • coal bed methane, 
    • shale oil, 
    • hydrogen/fuel cells,
    • hybrid vehicles, 
    • advanced computing, 
    • nuclear technology and 
    • NAPCC projects etc.
Who all will be eligible?

  • Any individual/ consortium of organizations in the 
  • government/public sector/private sector working on 
  • projects or research can avail the finance in the form of 
  • loan or viability gap funding. 
    • Government assistance - in no case exceed 40% of the total project cost. 


  • has been not able to achieve the objective 
  • under utilization- 1/8th of the amount collected has been disbursed. 
  • manner of utilization and the administration of NCEF


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