The major incentives are:
- 100% Depreciation: The total value of plant and machinery is
allowed to be depreciated in the first year.
- Excise Exemption: The solid fuel briquettes are completely
exempted from Excise duty. The Government is also considering
exemption in the case of plant and machinery.
- Sales Tax Exemption: The various states like Madhya Pradesh,
Maharastra, Rajasthan, Tamilnadu, Delhi & Pondicherry have
exempted solid fuels briquettes from sales tax. Other states are
also considering the same and many states and offering sales tax
exemption in backward area.
- No Licenses: The whole industry of non conventional energy
sources has been exempted for obtaining any license.
- Income tax Exemption for first five years.
- The Central and State Government give subsidies.
- Low rate of interest from govt. financial institutions.
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