New Delhi, Feb 26 (IANS) India's renewable energy sector budget has been increased by 61 percent to Rs.1,000 crore from Rs.620 crore, signalling the government's commitment to popularising alternate source of energy in the country.

'In pursuance of government's resolve to implement the National Solar Mission, I propose to provide a concessional customs duty of five percent to equipment required for the initial setting up of solar thermal power generating units,' Finance Minister Pranab Mukherjee said while presenting the 2010-11 budget in the Lok Sabha Friday.

The central excise duty on LED lights, a highly energy-efficient source of lighting for streets, homes and offices, has been reduced from eight percent to four percent at par with fluorescent lamps.

Full exemption from central excise duty has been provided to electric cars and vehicles that offer an eco-friendly alternative to petrol or diesel vehicles.

'The manufacturers of such vehicles have expressed difficulty in neutralising the duty paid on their inputs and components. I propose to remedy this by imposing a nominal duty of four per cent on such vehicles,' Mukherjee said.

The budget also provided a concessional excise duty of four percent battery-run rickshaws.