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Rs 4,400 crore for clean air action plan in big cities

The finance minister also proposed to shut down existing thermal power plants with high carbon emissions.

New Delhi: The concerns over the deteriorating air quality in India's big cities have found an echo in the budget speech with finance minister Nirmala Sitharaman announcing an allocation of Rs 4,400 crore to states which come up with schemes to ensure clean air in cities which have a population of above one million.

"The government proposes to encourage such states that are formulating and implementing plans for ensuring cleaner air in cities above one million… Allocation for this purpose is Rs 4,400 crore for 2020-21," she said, presenting the budget.

A study last year had reported that 22 of the world's most polluted cities were in India, with Gurgaon topping the list which also had the capital New Delhi at 11th position.

The finance minister also proposed to shut down existing thermal power plants with high carbon emissions. "There are thermal power plants that are old and their carbon emission levels are high. For such power plants, we propose that utilities running them would be advised to close them, if their emission is above the pre-set norms. The land so vacated can be put to alternative use," she said.

She also announced expansion of PM KUSUM scheme for harnessing solar energy by farmers for achieving diesel-free agriculture eventually. Besides, the minister indicated that there would be a new scheme to reduce financial stress of debt-laden power distribution firms and incentives will be provided in form of lower corporate tax for new power projects. "There are yet, thermal power plants that are old and their carbon emission levels are high. For such power plants, we propose that utilities running them would be advised to close them, if their emission is above the pre-set norms. The land so vacated can be put to alternative use," Ms Sitharaman said.

Power Minister R.K. Singh said there are certain plants which either do not have space for putting emission control equipment or they simply cannot do that. The initiative is expected to nudge states to close all those old thermal power plants and capitalise vacated land.

The finance minister also proposed to extend the concessional corporate tax rate of 15 per cent to new domestic companies engaged in the generation of electricity in order to attract investment in power sector.

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