Monday, June 24, 2013

India Said to Plan Wind-Farm Tax Break Revival, Subsidy Increase

By Natalie Obiko Pearson ,
India plans to revive tax breaks for wind farms after the size of the market fell by almost half following the expiry of the program, two government officials with direct knowledge of the matter said.
The Ministry of New and Renewable Energy has proposed to reintroduce tax depreciation benefits for wind-farm owners and increase an alternate generation-based subsidy, the officials said, asking not to be identified because the proposal is awaiting Cabinet approval.
Investment in the wind industry sputtered after the two incentives expired on March 31 last year, stalling turbine orders for manufacturers like Suzlon Energy Ltd. (SUEL) Installations plunged 47 percent in the last financial year, toppling India from its place as the world’s third-biggest market.
Wind project investors could claim the benefits retroactively from April 1, 2012, should the tax breaks be revived, the officials said.