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| Government launches incentive scheme for wind energy projects |
| BS Reporter / New Delhi Dec 18, 2009, 00:42 IST |
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The Ministry of New and Renewable Energy (MNRE) has announced an incentive of 50 paise per unit of wind power fed by independent power producers into the grid.
The generation-based incentive (GBI) is aimed at attracting investment in the wind energy sector and increasing the quantum of grid-interactive renewable power.“We are implementing the GBI scheme for grid-interactive wind power producers from today. This would definitely boost wind power producers and help in cutting carbon emission,” New and Renewable Energy Minister Farooq Abdullah said today.
The incentive has been capped at Rs 62 lakh per Mw and the total yearly disbursement will not exceed Rs 15.5 lakh per Mw for the first four years. The sops, to be continued till the end of the current Plan period (2007-12), will be provided to companies through the Indian Renewable Energy Development Agency (IREDA), the financial development agency for the renewable energy sector.The incentive, however, will be limited to wind power generation plants with a maximum installed capacity of 4,000 Mw.
The scheme will allow the investors, apart from getting the tariff determined by the state regulatory commissions, also get an incentive of 50 paise per unit of electricity for a period of 10 years, provided they do not claim the benefit of accelerated depreciation.
The ministry had earlier announced the provision of 80 per cent accelerated depreciation under the Income Tax Act for those investors who have a sound balance sheet to absorb depreciation benefits.
The domestic industry has welcomed the incentive scheme. “The GBI programme will create an attractive investment market for large integrated power projects and foreign direct investors, which will facilitate projects of 50 Mw and above. It is an extremely positive step for the industry in India,” said Tulsi Tanti, chairman and MD of Suzlon EnergyIndia’s largest wind turbine maker.
Share price of Suzlon Energy, a major equipment supplier for wind energy, at the Bombay Stock Exchange today closed at Rs 82.9, up 2.47 per cent compared to the previous day’s close.
Last year, the ministry had announced a similar scheme to provide generation-based incentive to grid-interactive solar power projects of up to a maximum capacity of 50 Mw.
Wind energy accounts for over 70 per cent of the total 15,540 Mw of installed renewable energy generation capacity in India. The country is likely to spend over Rs 1,00,000 crore in setting up renewable energy generation capacity by the end of the current Plan period, Debashish Majumdar, chairman of IREDA, had informed earlier this year.
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