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A UK-funded report, released today in Chennai, recommends a range of fiscal instruments for climate-friendly industrial growth in Tamil Nadu.
It was released by C V Sankar, Industry Secretary, Government of Tamil Nadu, at the Confederation of Indian Industry’s Sustainability Conference. It is a joint effort by the Madras School of Economics (MSE) and CII-Godrej Green Business Centre and has been supported by the British High Commission’s Prosperity Fund India Programme.
Recommendations include a mix of taxes, subsidies, incentives to encourage low-carbon investment, technology and practice in Tamil Nadu. Other suggestions include reducing VAT on energy-saving material, higher state-VAT on high-energy consuming construction material and a congestion tax to finance and a green motor vehicle tax to subsidise use of low-polluting vehicles. There are also references to reducing property tax on green buildings and increasing rates for high-energy consuming properties. The report also proposes a Green Fund through a Green Cess on conventional power to help finance renewable energy technologies.
British Deputy High Commissioner, Chennai, Bharat Joshi said:
In 2012, the Lord Mayor of the City of London launched the first report in Chennai. It recommended a fiscal route to a low-carbon pathway in Tamil Nadu. I am delighted that two years on, the report released today offers detailed, innovative and focused policy suggestions, some of which draw on the UK’s own experience. We hope that these ideas will encourage new investment and technology that will help Tamil Nadu, one of India’s most industrialised and urbanised states, to realise its plan to reduce its carbon footprint while accelerating sustained economic and industrial growth. The UK is a leader in low-carbon and we are pleased to be collaborating with Tamil Nadu in this exciting project. We hope it will encourage other states to follow suit.
The British High Commission’s Prosperity Fund in India has supported this project endorsed by the Government of Tamil Nadu and implemented by an Indo-UK consortium of the Confederation of Indian Industry (CII), Eunomia UK (a renowned consultancy) and the Madras School of Economics. The project has seen shared lessons learned from UK and international policy experiences. Key state agencies in Tamil Nadu (industries, pollution control, power) were closely involved and provided inputs. Eunomia is a UK-based consultancy with experience in environmental, technical and commercial disciplines. Service areas include Waste management, Low carbon energy, Resource efficiency and Climate change mitigation.
- The project draws on UK and international experience:
- energy/GHG-related taxes
- emissions trading
- tax exemptions/credits/reductions
- soft loans/revolving funds
- guarantee funds and
- support for environmental management.
Fiscal instruments for climate friendly industrial development in Tamil Nadu (PDF, 1.36MB, 48 pages)
Transcript of British Deputy High Commissioner, Chennai Bharat Joshi’s speech.
- For media queries please contact R Fernandez, Head (South India), Press & Public Affairs, British Deputy High Commission, Chennai. Mob: +91-9840340282.