An indication to this effect was given here today by New and Renewable Energy Minister Farooq Abdullah while addressing the India Carbon Market Conclave, organised by FICCI in partnership with The World Bank and the German Environment Ministry.

"The provision for inclusion of these incentives have been discussed with the Planning Commission and I have requested the planners to offer these for a larger period of eight years rather than five that was given during 11th Plan," Abdullah said.

The Minister expressed confidence that the National Development Council which is to meet soon would put its stamp of approval to the Ministry's proposals for the 12th Plan (2012-17).

Abdullah also said that a Group of Ministers (GoM) will decide on the modalities for increasing the ethanol: petrol mix from the present 3 per cent to 5 per cent.

The decisions of the GoM will be posed to the Union Cabinet soon.

The Minister cautioned the domestic industry against the import of cheap, low quality technology while underlining the need to acquire the state-of-the-art equipment and technology from the US and Europe and also urged the Indian industry to beef up their manufacturing capabilities and capacities.

Asked whether India would be able to offer power to Pakistan as was being talked about in recent India-Pakistan peace parleys, Abdullah said, "Although India is deficient in power and our needs are growing at a rapid pace, sometimes in the interest of building and maintaining good neighbourly relations, such gestures have to be made."

Arbind Prasad, Director General of FICCI, stated that the challenge before India in the renewable energy sector is to reduce the per-unit cost of renewable energy. He said that there is a continuous need to innovate, increase efficiencies and bring down costs.

V Saibaba, Chairman, FICCI Solar Energy Task Force and CEO Lanco Solar, mentioned that the interest cost is the major component of renewable energy cost in India today.

In this regard, Saibaba stressed on the need to lower the interest rates in India since these were very high (13 per cent) as compared to 3 per cent in Germany.