Parliamentary panel deplores diversion of clean energy fund to compensate states for GST

A Parliamentary panel on estimates has deplored the diversion of monies from the Rs 86,440.21-crore large National Clean Energy Fund (NCEF) to compensate states for the potential losses they would face on account of implementation of Goods and Services Tax (GST). The committee of estimates, headed by BJP veteran Murli Manohar Joshi, raised concern about the issue in a report on the performance of the national action plan on climate change.

The funds from NCEF are to be used for clean energy projects, climate change projects and on river conservation and cleaning programmes. Between 2010-11 and 2017-18, coal cess of Rs 86,440.21 crore was collected and projects worth Rs 15,911.49 crore were financed from NCEF. "The committee is concerned to note that in spite of substantial revenue being generated out of coal cess, the same is not being allocated to the NCEF, and even the low allocation is not being utilised, which indicates poor planning and execution on part of implementing agencies."

The committee was also informed by the Agriculture Ministry that climate change is projected to reduce irrigated rice yield by around 4 per cent in 2020 and rain-fed rice yield by 6 per cent. With adaptation, however, irrigated rice yield may increase by about 17 per cent and rain-fed yield by 20 per cent.