Old thermal power plants to be shut says Nirmala Sitharaman

New Delhi: Old coal-fired power plants not meeting emission norms will be closed and their land put to alternative use, Finance Minister Nirmala Sitharaman said on Saturday as she provided Rs 4,400 crore in her Budget for measures to ensure clean air.

She also announced expansion of PM KUSUM scheme for harnessing solar energy by farmers for achieving diesel-free agriculture eventually.

Besides, the minister indicated in her Budget speech 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," Sitharaman said.

The new scheme would be implemented by environment ministry with an outlay of Rs 4,400 crore. "In large cities having population above one million, clean air is a matter of concern.

The government proposes to encourage such states that are formulating and implementing plans for ensuring cleaner air in cities above one million.

Parameters for the incentives would be notified by the Ministry of Environment, Forests and Climate change. Allocation for this purpose is Rs 4,400 crore for 2020-21," she said.

About this initiative of the government, Power Minister R K Singh told reporters that there are certain plants which either do not have space for putting emission control equipment or they simply cannot do that.