MNRE announces incentive for wind energy projects

"The investors, apart from getting the tariff (as determined by the state regulatory commissions) would get an incentive of Rs 0.50 per unit of electricity for a period of ten years provided they do not claim the benefit of accelerated depreciation" said Vilas Muttemwar, minister of state for new and renewable energy.

The ministry had earlier announced the provision of 80 percent accelerated depreciation under the income tax act for those investors who have a sound balance sheet to absorb the depreciation benefits.

The minister also added that the incentive will be provided to the eligible project promoters through Indian renewable energy development agency (IREDA) - a government company under the MNRE which promotes and extend financial assistance for renewable energy projects.

The IREDA will give the GBI to the generators through their bank accounts on a half yearly basis through e-payment.

The incentive however will be limited only for those grid interactive wind power generation plants which have a minimum installed capacity of 5 mw and installed at project sites approved by the center for wind energy technology (C-WET).

Earlier this year, the ministry has announced a similar demonstration scheme to provide generation based incentive to grid interactive solar power projects of upto a maximum capacity of 50 mw.

The installed capacity of power from renewable energy sources stands at about 12,400 mw currently - out of which about 10,250 mw is connected to the grid. The government now plans to ramp up the capacity from renewable sources to 15,000 mw by the end of the current plan period (2007-2012). A major chunk of this renewable power capacity - 10,500 mw - is to come from wind energy.