Our Bureau
Dec. 17
The Ministry for New and Renewable Energy has announced generation-based incentive scheme for grid-connected wind power projects.
Under the scheme, a generation-based incentive of 50 paise a unit for electricity fed into the grid from wind power projects, subject to a maximum of Rs 62 lakh/MW, will be provided. This is expected to increase the investor base.
The incentive will be over and above the tariff fixed by the State Regulatory Commissions for purchase of electricity from wind power projects. Currently, the average price of wind power is about Rs 3 a unit. The Government will spend about Rs 380 crore on wind power subsidies.
A capacity of 4,000 MW is anticipated through the incentive scheme during the remaining period of the 11 {+t} {+h} Plan. India now ranks fifth in the world after the US, Germany, Spain and China with a wind power installed capacity of about 11,000 MW.
The wind power potential of the country, estimated to be over 45,000 MW, could go up.
The Minister for New and Renewable Energy, Dr Farooq Abdullah, unveiled the incentive scheme at a seminar on ‘Policy incentives for independent power producers and investors for wind and biomass power generation' here on Thursday.
The Indian Renewable Energy Development Agency (IREDA) will implement the incentive scheme. The existing system followed by various state utilities for data collection of electricity generation for the purpose of disbursal of tariff would be followed with additional safeguards as the basis for disbursal of scheme.
IREDA would create a comprehensive database of the all the wind turbines – those availing themselves of the incentive scheme as well as those availing themselves of the accelerated depreciation. A registration process will be put in place for all the wind turbines, which would be a mandatory requirement for claiming the above incentives.
Accelerated depreciation benefit would run simultaneously, till the end of 11 {+t} {+h} Plan period or introduction of proposed Direct Taxes Code, whichever is earlier, in a mutually exclusive manner. The benefit would also be available for captive wind power projects but not for third-party sale. The prerequisites for maximising early harnessing of wind potential viz. a robust manufacturing base, wind resource availability; regulatory framework and investor confidence are available.
The Government has already initiated several measures to enable India to be a global leader in renewable energy, particularly in wind sector. These include the package of fiscal and financial incentives including concessions such as 80 per cent accelerated depreciation, concessional custom duty, excise duty exemption, sales tax exemption, and income tax exemption for 10 years.
Dec. 17
The Ministry for New and Renewable Energy has announced generation-based incentive scheme for grid-connected wind power projects.
Under the scheme, a generation-based incentive of 50 paise a unit for electricity fed into the grid from wind power projects, subject to a maximum of Rs 62 lakh/MW, will be provided. This is expected to increase the investor base.
The incentive will be over and above the tariff fixed by the State Regulatory Commissions for purchase of electricity from wind power projects. Currently, the average price of wind power is about Rs 3 a unit. The Government will spend about Rs 380 crore on wind power subsidies.
A capacity of 4,000 MW is anticipated through the incentive scheme during the remaining period of the 11 {+t} {+h} Plan. India now ranks fifth in the world after the US, Germany, Spain and China with a wind power installed capacity of about 11,000 MW.
The wind power potential of the country, estimated to be over 45,000 MW, could go up.
The Minister for New and Renewable Energy, Dr Farooq Abdullah, unveiled the incentive scheme at a seminar on ‘Policy incentives for independent power producers and investors for wind and biomass power generation' here on Thursday.
The Indian Renewable Energy Development Agency (IREDA) will implement the incentive scheme. The existing system followed by various state utilities for data collection of electricity generation for the purpose of disbursal of tariff would be followed with additional safeguards as the basis for disbursal of scheme.
IREDA would create a comprehensive database of the all the wind turbines – those availing themselves of the incentive scheme as well as those availing themselves of the accelerated depreciation. A registration process will be put in place for all the wind turbines, which would be a mandatory requirement for claiming the above incentives.
Accelerated depreciation benefit would run simultaneously, till the end of 11 {+t} {+h} Plan period or introduction of proposed Direct Taxes Code, whichever is earlier, in a mutually exclusive manner. The benefit would also be available for captive wind power projects but not for third-party sale. The prerequisites for maximising early harnessing of wind potential viz. a robust manufacturing base, wind resource availability; regulatory framework and investor confidence are available.
The Government has already initiated several measures to enable India to be a global leader in renewable energy, particularly in wind sector. These include the package of fiscal and financial incentives including concessions such as 80 per cent accelerated depreciation, concessional custom duty, excise duty exemption, sales tax exemption, and income tax exemption for 10 years.
