Wind power association calls for incentives; says wind energy crucial for SMEs
Updated: May 13, 2013 06:02:27pm
New Delhi, May 13 (KNN) Indian Wind power association has called for re-establishment of accelerated depreciation (AD) an incentive given to investors which would also contribute to reducing cost of production among Indian SMEs, making them more competent than neighbouring countries.
Accelerated depreciation-which allowed 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.
Indian Wind Power Association, Chairman, K Kasthurirangaian said that withdrawal of AD has led to significant loss of capacity addition, revenue loss and adversely affected the micro, small and medium enterprises, which tapped wind energy as a clean and prime source to meet their requirements.”
Furthermore, he said that 40 per cent of the total wind energy produced in the country was from Tamil Nadu.
“The state faces 4-6 hours of power cuts during peak hours and around 12 hours power cut in total, except in Chennai; the power generated through wind energy which is the most affordable form of renewable energy, is not sufficient to meet the demand of industries like textile, foundry etc. So, the withdrawal of the scheme is keeping the investors away from putting their money into wind power projects,” he said.
Meanwhile Credit Rating Information Services of India Limited (CRISIL) emphasizing the contribution of wind energy to the economy and SMEs in particular said, “The withdrawal of AD has caused net loss to the government. The government is losing on its Gross Domestic Product (GDP), employment and export due to the severe power problem faced by the small industry which is decreasing its output.”
Addressing the concerns of the MSME sector, Joint Secretary of Federation of Indian Micro Small and Medium Enterprises Mukesh Kalra said, “The needs of 26 million SMEs in India cannot be met by any one source of energy alone. Thermal, nuclear and hydro energy cannot adequately meet the requirements of the industry; hence there should be a renewable, pollution free, long term and cheaper source of energy to make SMEs more competent and energy efficient.
“As soon as the industry came forward to invest in wind energy, the Government withdrew the scheme,” he added.
The financial report of Indian Renewable Energy Development Agency (IREDA) said that wind energy sector had negligible level of Non-Performing Assets at present which is a potential indicator to highlight that wind projects availing tax benefits are generating enough electricity to service respective debt and maintaining overall viability. (KNN)
Accelerated depreciation-which allowed 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.
Indian Wind Power Association, Chairman, K Kasthurirangaian said that withdrawal of AD has led to significant loss of capacity addition, revenue loss and adversely affected the micro, small and medium enterprises, which tapped wind energy as a clean and prime source to meet their requirements.”
Furthermore, he said that 40 per cent of the total wind energy produced in the country was from Tamil Nadu.
“The state faces 4-6 hours of power cuts during peak hours and around 12 hours power cut in total, except in Chennai; the power generated through wind energy which is the most affordable form of renewable energy, is not sufficient to meet the demand of industries like textile, foundry etc. So, the withdrawal of the scheme is keeping the investors away from putting their money into wind power projects,” he said.
Meanwhile Credit Rating Information Services of India Limited (CRISIL) emphasizing the contribution of wind energy to the economy and SMEs in particular said, “The withdrawal of AD has caused net loss to the government. The government is losing on its Gross Domestic Product (GDP), employment and export due to the severe power problem faced by the small industry which is decreasing its output.”
Addressing the concerns of the MSME sector, Joint Secretary of Federation of Indian Micro Small and Medium Enterprises Mukesh Kalra said, “The needs of 26 million SMEs in India cannot be met by any one source of energy alone. Thermal, nuclear and hydro energy cannot adequately meet the requirements of the industry; hence there should be a renewable, pollution free, long term and cheaper source of energy to make SMEs more competent and energy efficient.
“As soon as the industry came forward to invest in wind energy, the Government withdrew the scheme,” he added.
The financial report of Indian Renewable Energy Development Agency (IREDA) said that wind energy sector had negligible level of Non-Performing Assets at present which is a potential indicator to highlight that wind projects availing tax benefits are generating enough electricity to service respective debt and maintaining overall viability. (KNN)
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