| Considering the importance of Alternate Energy Sources and their vast potential in the country the Government has announced a series of Financial Incentives for their promotion. |
| 100 % Depreciation: |
The total value of plant and machinery is allowed for depreciation in the first year itself. |
| Excise Exemption: |
Solid fuel Pelletising and Pelletising plant machinery are completely exempted from excise duty. |
| Sales Tax Exemption: |
Various states namely Madhya Pradesh, Maharashtra, Rajasthan, Tamilnadu, Gujarat, Delhi, Haryana, Punjab and Pondicherry have exempted solid fuel Pellet from sales tax. Other states are also considering the same. |
| Low Rate of Interest: |
Pelletising being industry suitable for rural area loan at lower rate of interest is available. |
| Income Tax holiday: |
Income Tax Holiday is available for manufacturer of briquettes/pellets. |
| Delicencing of Industry: |
The whole industry on non-conventional energy sources has been delicenced and no license is required for setting up the same. |
| Benefits of Priority & SSI Sector: |
Energy being a priority sector and considering the cost of project, benefits of both the priority and SSI are available. |
