National Clean Energy Fund (NCEF)

Details:

• 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. 

Criticism

• 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