Govt to reinstate incentive for wind energy sector, says FM
Updated: Jul 26, 2014 03:13:10pm
New Delhi, Jul 26 (KNN) With a view to boosting the wind energy sector, the government has decided to reinstate the accelerated depreciation (AD) scheme, an incentive given to investors which would also contribute to reducing cost of production among Indian SMEs, through the Finance Bill.
Accelerated depreciation-allowing the investing company 80 per cent depreciation for computing taxable profits in the first year of buying wind turbines, was abolished on April 1, 2011 by the Government, causing a dip in the 12th Plan.
“To encourage the wind energy programme, there is an accelerated depreciation. There was confusion whether we have extended it or not. Members wanted it to be extended. I am, therefore, continuing with that accelerated depreciation,” Finance Minister, Arun Jaitley informed Parliament yesterday.
There was some confusion about the accelerated depreciation scheme this year, as the Budget speech in English did not mention it, while the Hindi version did.
The other incentive which the sector has is generation-based incentive (GBI) of 50 paise a unit of wind power produced, introduced in the 2011 Union Budget.
The industry has also been seeking an increase in funding for GBI as there are pending claims of GBI of the order of Rs 300 crore.
Wind energy is the largest renewable energy option producing clean energy in India. A cumulative capacity of over 21,200 Mw has been set up so far. A target of 15,000 Mw has been kept for the 12th Plan. The main driving force and the real incentive for development of wind sector has been the provision for AD, an incentive also available to many other sectors. (KNN/SD)
Accelerated depreciation-allowing the investing company 80 per cent depreciation for computing taxable profits in the first year of buying wind turbines, was abolished on April 1, 2011 by the Government, causing a dip in the 12th Plan.
“To encourage the wind energy programme, there is an accelerated depreciation. There was confusion whether we have extended it or not. Members wanted it to be extended. I am, therefore, continuing with that accelerated depreciation,” Finance Minister, Arun Jaitley informed Parliament yesterday.
There was some confusion about the accelerated depreciation scheme this year, as the Budget speech in English did not mention it, while the Hindi version did.
The other incentive which the sector has is generation-based incentive (GBI) of 50 paise a unit of wind power produced, introduced in the 2011 Union Budget.
The industry has also been seeking an increase in funding for GBI as there are pending claims of GBI of the order of Rs 300 crore.
Wind energy is the largest renewable energy option producing clean energy in India. A cumulative capacity of over 21,200 Mw has been set up so far. A target of 15,000 Mw has been kept for the 12th Plan. The main driving force and the real incentive for development of wind sector has been the provision for AD, an incentive also available to many other sectors. (KNN/SD)
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