Finance, Other, Wind

Indian Wind industry calls for restoration of accelerated depreciation

According to reports, wind industry  in its pre budget memorandum to the finance ministry has made a strong pitch for the restoration of accelerated depreciation (AD), waiver in the uniform customs duty of 5% for components used for wind energy generation and inclusion of wind energy project under the priority lending category for fast implementation of projects.

The Indian Wind Turbine Manufacturers Association (IWTMA) has called for lowering the interest rate and longer tenure of lending for wind sector.

DV Giri, Secretary General, IWTMA, said  the wind sector has been severely hit post March 31, 2012 after the discontinuation of the AD, which has reflected in capacity addition during the first half of the year. As the incentive tool is offered to other renewable energy, Giri has emphasised the ned for reinstatement of  AD for wind energy sector.
As the existing incentive under sunset clause of Section 80 IA is expiring the current financial year, the Association has requested the extension for setting up of the project up to March 31, 2020.

The Association has demanded re-instatment of  concessional Customs Duty Certificate (CCDC) benefit to raw material & parts suppliers to wind turbine blades, inclusion of construction activities involved in the installation of wind power projects, operation and maintenance work in the specified infrastructure and be exempted from service tax. Besides, it has called for the exclusion of “H Glass Roving” from the anti-dumping duty notified vide notification as there are no roving manufactures for specific high performance glass fabrics in the country

Moreover, the Association has suggested that a a clause for a stricter compliance of the Renewable Purchase Obligation (RPO) by the states with a penalty should be added to boost the Renewable Energy Certificate (REC) market  which was trading at the floor price and having many certificates unsold.

According to the Association those manufacturers who are increasing the percentage of localization in manufacturing should be incentivised and the Greed Energy Fund announced in 2010 should be used.



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