TN wind power association seeks restoration of tax incentive
Updated: Jul 26, 2013 06:03:58pm
Chennai, Jul 26 (KNN) The Indian Wind Power Association (IWPA) has reiterated its demand for restoration of tax incentive based on Accelerated Depreciation (AD) on plant and machinery following a massive decline in investment in the sector.
In a new letter to the Minister of State for Finance, J D Seelam, IWPA has urged the Climate Parliament, which consists of multi-party parliamentarians to meet with them to discuss ways of restoring growth of investment in windmills.
The Climate Parliament has taken the issue of re-instatement of Generation Based Incentive (GBI) and reintroduction of AD to the government. Comprising of multi-party parliamentarians, it met earlier this week in Bangalore and reinforced the fact that India has a huge potential for wind energy.
Cutting across party lines, the network of parliamentarians working to promote renewable energy has asked the central government to take immediate measures for the development of wind energy in the country.
Investment in wind mills in India grew steadily from 1992 to 2012 making it capable of investing Rs 19,200 crores for installing 3200 MW in 2011-12 and making India the fifth largest wind power nation in the world, IWPA Chairman K Kasthurirangaian said.
Both the Generation Based Incentive and AD was withdrawn by CBDT on April 1, 2012.
“2012-13 saw an addition of only 1700 MW. As much as Rs 9,000 crore of investment and installation of 1500 MW has vanished,” he added in the letter.
MSME industries which were ploughing back profits earned, into installing windmills for self-consumption of energy are unable to have an AD scheme which can provide them the margin money of 25 per cent of the cost of windmills to produce cheap wind energy, he said.
Wind energy enables the MSMEs to produce goods at a cheaper rate, making them competitive with China.
Another impact of incentive withdrawal was, “Independent power producers who depend on GBI also found other avenues of investment more attractive and left the wind energy sector,” he added.
To be in the line with targets set by National Action Plan for Climate Change (NAPCC) MNRE Ministry had set aside 3000 MW for new windmills to get one per cent growth of carbon reduction every year. The target has only been half fulfilled. The ever vibrant wind power sector of India is a lame duck now, said the letter.
The Climate Parliament group MPs’ key recommendations and suggestions to the Government include re-assessment and validation of wind potential at the national level, adequate planning for transmission infrastructure including inter-state transmission and specific policy on repowering wind sites.
Addressing the conference held in Bangalore earlier this week, Minister of State for Finance, J D Seelam, promised that his Ministry would extend its support towards promoting wind energy.
The MPs Jhansi Lakshmi Botcha, Govardhan Reddy, Ratna Bai, Dhruvnarayan Rangaswamy (Congress), Gundu Sudharani (Telugu Desam), Vasanthi Stanley, K P Ramalingam (DMK), Mansukh Mandaviya (BJP),Vandana Chavan (NCP) and Anup Kumar Saha (CPI (M) attended the meeting, a Climate Parliament official said.
The meeting assessed that wind energy sector has been undergoing some critical issues after key financial incentives were withdrawn from the sector.
The investments in the year 2012-13 were almost half of the investments in 2011-12, they said. (KNN/SD)
feedback: newsdesk@knnindia.co.in
In a new letter to the Minister of State for Finance, J D Seelam, IWPA has urged the Climate Parliament, which consists of multi-party parliamentarians to meet with them to discuss ways of restoring growth of investment in windmills.
The Climate Parliament has taken the issue of re-instatement of Generation Based Incentive (GBI) and reintroduction of AD to the government. Comprising of multi-party parliamentarians, it met earlier this week in Bangalore and reinforced the fact that India has a huge potential for wind energy.
Cutting across party lines, the network of parliamentarians working to promote renewable energy has asked the central government to take immediate measures for the development of wind energy in the country.
Investment in wind mills in India grew steadily from 1992 to 2012 making it capable of investing Rs 19,200 crores for installing 3200 MW in 2011-12 and making India the fifth largest wind power nation in the world, IWPA Chairman K Kasthurirangaian said.
Both the Generation Based Incentive and AD was withdrawn by CBDT on April 1, 2012.
“2012-13 saw an addition of only 1700 MW. As much as Rs 9,000 crore of investment and installation of 1500 MW has vanished,” he added in the letter.
MSME industries which were ploughing back profits earned, into installing windmills for self-consumption of energy are unable to have an AD scheme which can provide them the margin money of 25 per cent of the cost of windmills to produce cheap wind energy, he said.
Wind energy enables the MSMEs to produce goods at a cheaper rate, making them competitive with China.
Another impact of incentive withdrawal was, “Independent power producers who depend on GBI also found other avenues of investment more attractive and left the wind energy sector,” he added.
To be in the line with targets set by National Action Plan for Climate Change (NAPCC) MNRE Ministry had set aside 3000 MW for new windmills to get one per cent growth of carbon reduction every year. The target has only been half fulfilled. The ever vibrant wind power sector of India is a lame duck now, said the letter.
The Climate Parliament group MPs’ key recommendations and suggestions to the Government include re-assessment and validation of wind potential at the national level, adequate planning for transmission infrastructure including inter-state transmission and specific policy on repowering wind sites.
Addressing the conference held in Bangalore earlier this week, Minister of State for Finance, J D Seelam, promised that his Ministry would extend its support towards promoting wind energy.
The MPs Jhansi Lakshmi Botcha, Govardhan Reddy, Ratna Bai, Dhruvnarayan Rangaswamy (Congress), Gundu Sudharani (Telugu Desam), Vasanthi Stanley, K P Ramalingam (DMK), Mansukh Mandaviya (BJP),Vandana Chavan (NCP) and Anup Kumar Saha (CPI (M) attended the meeting, a Climate Parliament official said.
The meeting assessed that wind energy sector has been undergoing some critical issues after key financial incentives were withdrawn from the sector.
The investments in the year 2012-13 were almost half of the investments in 2011-12, they said. (KNN/SD)
feedback: newsdesk@knnindia.co.in
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