Finance, Other, Wind

Wind power association seeks support for small-scale investors

According to reports, the Indian Wind Power Association has appealed to the Union Government to extend the investment allowance, announced in the Union Budget this year, to micro, small and medium-scale wind energy projects that are less than Rs. 100 crore.

Association president K. Kasthurirangaian has said in a release that the minimum investment ceiling of Rs. 100 crore should be removed so that all the wind mill investors benefited from the scheme. Similarly, allocation of funds to the Indian Renewable Energy Development Agency from the National Clean Energy Fund for low cost financing of renewable energy projects should benefit the small-scale investors.

The additional wind energy capacity added in the country in 2011-12 was 3,200 MW with an investment of Rs. 19,200 crore.

However, after withdrawal of the accelerated depreciation and generation-based incentive schemes for the sector last April, investments dropped to 1,200 MW this year. The year (2012-13) could end with just 1,400 MW of capacity addition. With the Centre allocating Rs. 800 crore for the generation based incentive scheme this year, investments were expected to revive.

The Centre should consider restoration of the accelerated depreciation scheme too, he said.

It would bring back investments in the sector and 2013-14 could see nearly 4,000 MW of wind mill installation. Accelerated depreciation scheme enabled small-scale investors to get margin money for investment, he said.

Of the new installations this year, just 169 MW was installed in Tamil Nadu though the State had a substantial share in the installed wind energy capacity in the country.

With delay in payment by the Tamil Nadu Generation and Distribution Corporation for wind energy supplied to the State, several investors were going to other States, he said.



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