STAFF REPORT IBD: The government is likely to waive off duties on import of parts of renewable energy plants in the upcoming budget in a bid to attract investment in the field of renewable energy sector in the country.
The proposal was discussed in a recently held high-level meeting chaired by Prime Minister Yousaf Raza Gilani to review the renewable energy development projects.
At present, there is no import duty on complete renewable energy plants but investors have to pay duty if they import parts. The Alternative Energy Development Board (AEDB) has submitted proposals to the Ministry of Finance which will be examined and if approved will be announced in the upcoming budget, an official of the ministry told this scribe.
Sources said that the prime minister had directed that AEDB be turned into a financially viable entity by forming a trust fund. The idea would be that AEDB will contribute to this fund by charging for services but the plan is still in its initial stage with many details yet to be finalised.
He said that apart from hydel power generation, the country possesses enormous potential of power generation through other renewable energy resources of wind, solar, geo-thermal and biofuel energy.