Wind turbine components exempted from excise duty

In a measure to promote clean energy generation, the Indian government on Tuesday exempted parts and components used in wind-operated electricity generators (WOEG) like tower, rotor and blades from excise duty.

"Parts such as tower, nacelle, rotor, blades, wind turbine controller etc of WOEG are eligible for exemption from central excise duty," the Central Board of Excise and Customs (CBEC) said a circular.

The move is designed to reduce litigation and improve the ease of doing business in the crucial renewable energy sector, the government said.

The circular was issued after CBEC "received references from trade regarding availability of exemption from excise duty to the parts and components of WOEG, popularly called wind turbines," said a finance ministry statement.