The government on Friday proposed fresh incentives for the power sector.

To encourage private participation in the transmission, it proposed to reduce customs duty on specific equipment for high voltage transmission projects from 25 per cent to 5 per cent.

The mega power project policy has been further liberalised by extending the benefits, available to the notified 18 mega power projects to any power project that fulfils the conditions prescribed for mega power project, Finance Minister Jaswant Singh said in his Budget proposals.

To encourage further research in solar energy, wind turbine and hydrogen fuel, the government has allocated Rs 20 crore (Rs 200 million) to the Council for Scientific and Industrial Research, for launching incentive-driven research in these three fields.

UNI