The Green Technology Financing Scheme, established in 2010, be-nefits companies which are produ-cers (up to RM50 million for 15 years) and users (up to RM10 million for 10 years) of green technologies.
"We receive positive feedback from the industry, particularly the biomass, biogas and biofuel producers. In order to speed up the process of getting more palm oil millers to generate more green power, it is proposed that the ceiling cap of RM50 million on green loans be raised to RM100 million," he said.
Palm oil millers in Malaysia are leading the way in "greening" the palm oil supply chain by capturing greenhouse gases before it enters the atmosphere and turning it into green energy and organic fertiliser.
By leveraging on home-grown green technologies, millers trap methane from the sludge and channel it to gas engines to generate electricity.
Zairin noted that palm oil millers, timber processors and rubber glove makers who use biomass to fuel their boilers are also eligible to apply for pioneer status and investment tax allowance.
The pioneer status, granted under the Promotion of Investments Act 1986, provides a 10-year income tax break for renewable energy businesses.
There is also a full tax allowance on qualifying five-year capital expenditure. Unused allowances can be carried forward until fully absorbed.
All applications for pioneer status, investment tax allowance and exemptions from import duty and sales tax must be submitted to the Malaysian Industrial Development Authority.
Zairin was speaking to Business Times on the sidelines of the Biomass Industry Networking Se-minar organised by the Malaysia Biomass Industries Confederation here yesterday.
He said the 2013 Budget had raised the target of the Green Technology Financing Scheme to RM3.5 billion and the implementation deadline is extended until the end of 2015.
Under the scheme, the government bears two per cent of the total interest/profit rate and guarantees 60 per cent of the green loan via Credit Guarantee Corp Malaysia Bhd, with the remaining 40 per cent financing risks borne by banks.
Read more: Proposal to raise green loan ceiling to RM100m http://www.btimes.com.my/Current_News/BTIMES/articles/zairin/Article/#ixzz2B3NGZzCM