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Wind mills are the next big players in the energy sector. The wind power potential of the country, presently estimated to be over 45,000 MW is predicted
to go up. |
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With a small stake of 30% upfront, the balance 70% comes in with pre arranged financial assistance from banks. |
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The action plan to enhance the role of wind mill in the energy sector Government of India has offered attractive packages to the consumer such as 80% accelerated depreciation, concessional custom duty, exemption from excise duty, sales tax & income tax for 10 years, etc
. |
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Thanks to the Ministry of New and Renewable Energy for offering
Generation Based Incentives ( GBI) of 50 paise per unit of electricity fed
into the grid from wind power projects subject to a maximum of Rs.
62.00 lakh per MW. The GBI will be over and above the tariff fixed by
the State Regulatory Commissions for purchase of electricity from wind
power projects. |
|
Wind Energy is eligible for carbon credit benefits under the Kyoto
Protocol for a decade from 2002. |
|
The 'Prototype carbon fund' of the World Bank encourages investor
to fund renewable energy projects. Investors are given pro-rata share
of the CERs produced from their investment. |
|
Central & State Government Policy Highlights: |
| |
- Excise duty/import tariff concessions.
- Tax holiday for power generation.
- Feed-in tariffs.
- Wind energy quota.
- Provision of banking, wheeling and third party sale of power.
- Other financial incentives/subsidies in certain states.
|
|
Foreign Investment Policy: |
| |
Automatic approval for foreign investors to enter into Joint Venture
with an Indian partner for financial and/or technical
collaboration/setting up of RE based power projects (100% equity
permissible) |
