A file picture of street lights in Calcutta using solar power

Siliguri, May 25: The government has formed the West Bengal Green Energy Development Corporation Limited to boost private investments in non-conventional energy sources like wind, biomass, solar and water.

Sunil Mitra, the additional chief secretary of power and non-conventional energy resources, said: “The new enterprise will be promoted by the West Bengal Power Development Corporation, West Bengal State Electricity Distribution Company Limited and the West Bengal Renewable Energy Development Agency, which will have 45, 30 and 25 per cents shares respectively and work under our department.”

Mitra was here to attend an interactive session with entrepreneurs organised by the north Bengal zonal council of the CII.

“Considering the incentives available for entrepreneurs in this sector like depreciation of assets (created for a non-conventional energy source unit which is to be included in expenditure) for five years, lower rate of income tax and advance withdrawal of carbon credits, we feel this is an emerging sector where private investors can be invited,” he said.

An Indian company can get carbon credit under the Kyoto Protocol of 1997 for each tonne of carbon dioxide that it can cut down on.

The credit can be sold to a unit in the European Union and the US that wants to purchase it to balance its high level of emission.

According to Mitra, a number of private investors has already come in north Bengal where “micro mini” hydel projects have been established in different places.

Another mega project in the sector that has been finalised is a 2-mw photovoltaic plant at Dishergarh Power Station Complex near Asansol.

For this, the Power Finance Corporation Limited has entered in an agreement with the new corporation. The investment will be around Rs 400 million, he said.