India's wind energy dips as incentives withdrawn
Due to withdrawal of incentives given by Indian government to wind power generators, the wind power generation in the country dropped by 1,500 mw last fiscal, Indian Wind Power Association (IWPA) has said. IWPA has asked the government to restore the generation-based incentives and accelerated depreciation for the industry which witnessed a dip of 1,500 mw in generation during 2012-13. Wind energy is the cheapest source of electricity in the country. The current installed capacity is 19,000 mw.
IWPA Chairman K Kasthurirangan said in Delhi that the reason for dip in wind power production is due to removal of incentives, IWPA has urged the government to restore the accelerated depreciation (AD), Kasthurirangan said at a conference in the Indian capital. AD is based on investment.
If a company invests Rs 100 then Rs 80 it can take back as tax incentive. Under the scheme for wind power, a generation based incentive (GBI) of 50 paise per unit of electricity fed into the grid is provided for a period not less than 4 years and a maximum period of 10 years.