India announces generation based incentive scheme for wind power projects


India announces generation based incentive scheme for wind power projects

The Government of India has developed a Generation Based
Incentive (GBI) scheme for wind power projects in the country including for
coastal areas.  

The Government has formulated this scheme to promote wind
power projects by providing fiscal and promotional incentives. The scheme is
meant for a capacity of 4000 MW during the 11th Plan period.

The promotional incentives include concessional import
duty on certain components of wind electric generators, excise duty exemption
to manufacturers and an incentive of Rs.0.50 per unit of electricity fed into
the grid by wind power projects is provided over and above the tariff given by
the State utilities.

Under this scheme, a project can avail of a maximum of Rs
62 lakh per MW which is to be availed in a period not less than 4 years and
maximum period of 10 years.

10 years tax holiday on income generated from wind power projects is also
available. Loans for installing windmills are available from Indian Renewable
Energy Development Agency (IREDA) and other Financial Institutions.

The Centre for Wind Energy Technology (C-WET), Chennai
will provide technical support including wind resource assessment. Preferential
tariff is being provided in wind resource rich states. In addition, 80 percent
accelerated depreciation to generators is available for the projects which do
not avail of Generation Based Incentive (GBI).

By Team
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