Generation Based Incentive reintroduced for wind¬†in India
‚ÄúWe are happy that wind energy sector has been recognized as a significant contributor to the power scenario of the country in the Budget 2013 proposals announced by the Union Finance Minister, Mr.P. Chidambaram‚Äù, said Mr. Ramesh Kymal, Chairman, Indian Wind Turbine Manufacturers‚Äô Association (IWTMA). ¬†
‚ÄúThe re-introduction of Generation Based Incentive (GBI) is a timely intervention for the wind industry which was suffering for more than one year. This would certainly rejuvenate and boost the sector with more investments in the wind industry. Reintroduction of GBI assumes greater significance as the industry has an ambitious plan of capacity addition in the current Plan Period. I am confident that the industry would bounce back by 2014-15 and may be able to cross the set target of 5000 MW capacity every year,‚Äù he added.¬†
Mr Kymal, who heads the Renewable Energy Council of Confederation of Indian Industry, also welcomed the Finance Minister‚Äôs announcement of providing low interest rate loans for funding wind energy projects. This fund allocation will be made available from National Clean Energy Fund (NCEF) through Indian Renewable Energy Development Agency (IREDA). ¬†
The Wind industry is glad about the extension of tax exemption of the clause 80-IA for one more year. This means that the green energy power projects can avail a tax holiday for a period of 10 years out of the total 15 year period.
Mr Kymal said that the Union Budget 2013-14 proposal is silent on the reintroduction of accelerated depreciation (AD), which is a tax deferral. We are confident that the AD figures in the fine print which would help the small and medium industry in the wind energy segment.¬†
IWTMA thanks the Prime Minister, Dr Manmohan Singh, the Finance Minister P Chidambaram and the Minster for New and Renewable Energy, Dr Farooq Abdullah for the support extended to the Renewable Energy Sector, especially to Wind Energy.