According to reports, the Indian Wind Power Association, which includes wind power investors and generators, has appealed to the Union Government to reinstate the accelerated depreciation scheme which has not been implemented for the last two years.
Association chairman K. Karthurirangaian has said in a press release that the scheme was available for wind energy from 1992 to 2012 and does not require budgetary allocation.
Even now it is available for investments in other sources of renewable energy. About 80 per cent of the investment in renewable energy is set off in Income Tax in the first three years.
In 2011-2012, wind energy sector attracted Rs. 19,000 crore investments and 3,200 MW was commissioned. In 2012-2013, the investments came down to Rs. 10,200 crore for 1,700 MW.
And, during the last financial year, just 2,100 MW was added.
The wind mill manufacturing capacity is capable of producing 5,000 MW of wind turbines a year and it has not been used to full capacity because of the lack of investments.
Mr. Kasthurirangaian appealed to the Union Government to reintroduce the scheme to attract investments in wind energy.
Further, renewable purchase obligation (RPO) should be monitored and implemented.
The distribution companies and captive consumers should purchase a specified percentage of energy from renewable energy sources but it has not been enforced properly.
Implementation of the RPO will also make investments in wind energy attractive, he said.