Suzlon Energy gains on accelerated depreciation scheme

Suzlon Energy rose following government's move to re-introduce the acceleraed depreciation scheme

Suzlon Energy rose nearly 5% to Rs 26 on the BSE on the reports following government's move to re-introduce the accelerated depreciation scheme for the wind energy sector.

 

Finance Minister Arun Jaitley said on late Friday that the government would amend the Finance Bill in this regard.

 

Accelerated depreciation permits the companies to claim a larger deduction during the initial years after the purchase of an asset compared with other depreciation accounting methods, under which the cost is spread evenly over the lifespan of an asset.

 

Accelerated depreciation may increase the orders of wind turbines and renewable assets and Suzlon is likely to benefit.

 

Shares of Suzlon Enerfy opened at Rs 26 on the BSE and touched a high of Rs 26 and a low of Rs 25.60 on the BSE. A total of 1,095,889 shares have been exchanged on the BSE so far.