Cement, Energy and Environment

concessions for which development have been made in this budget," Finance Minister Arun Jaitley said in parliament replying to the debate on the Budget for 2014-15. "Necessary amendment will be made to the Finance Bill," Jaitley added. The Accelerated Depreciation (AD) scheme and Generation-Based Incentive (GBI) scheme, which provided subsidies for setting up wind– generated power plants, were withdrawn in 2012. While investors and generators have been calling for its restoration, however, only the GBI has been restored so far. Currently, the AD scheme is available for investments in other sources of renewable energy. Investments in 2011-2012 in the wind energy sector was around Rs.19,000 crore and 3,200 MW was commissioned. In 2012-2013, the investments came down to Rs.1 0,200 crore for 1,700 MW. India's domestic wind manufacturing capacity exceeds 10,000 MW annually, mostly untapped for deployment within the country. Budget 2014-15 proposals to boost wind energy include doubling of the annual Clean Energy Fund from Rs.4,000 crore, exempting special additional duty of 4 percent on parts and materials required for manufacturing wind operated generators, and increase of the clean energy cess from Rs.50 to Rs.1 00 per tonne for financing and promoting. Courtesy: Power Business View GOVERNMENT AIMS TO ADD 10,000 MW PER YEAR The government plans to rapidly accelerate wind energy generation, adding an ambitious 10,000 MW every year, or five times the total new capacity that came up in the last fiscal , as the Modi government takes steps to reduce India's dependence on costly energy imports. Wind energy, which had been overshadowed b solar projects in recent years, got a big boost a~ the government h~s restored key tax incentives t had helped India emerge as one of the top tha · · 1 t · ' t f t · s in the world 1n generating e ec nc1 y rom coun ne . . wind . The government feels_ that tax 1~cent1 ~es d 'th conducive environment w1ll rap1dly couple WI accelerate wind energy. .. 0 . . lly the country planned to install ng1na , 18 , 500 MW during the 12th Plan period. However. new government is keen to go faster in wind power capacity addition, to reduce its dependence on imported fuels and increase the share of environment friendly energy resources. At a recent meeting with turbine makers and other stakeholders New and Renewable Energy Minister Piyush Goyal suggested to add 10,000 MW of wind power installations annually," said a government official requesting anonymity. He added ministry and wind turbine makers will jointly study the status of grid availability in six states with maximum wind velocity. According to Indian Wind Turbine Manufacturers Association (IWTMA) proposed target is achievable as the country has capacity to manufacture close to 9,500 MW of wind turbines and it can be expanded in short period. "Wind turbine makers are capable to meet proposed higher targets of the government. Higher volumes will bring down average cost of installations and even tariff to make wind power more attractive. By resolving issues related to wind power evacuation and renewable power purchase obligations of the state utilities, India can attract domestic investments in the sector that is getting increasing attention of global investments," said IWTMA chairman Madhusudan Khemka , who is MD of Chennai-based Regen Powertech . Like other power gear makers , Indian wind turbine makers too are facing competition from Chinese counterparts that also offer cheaper finance to the investors in wind energy. Khemka said Indian wind turbine makers with access to best technologies and services are globally competitive but they are unable to offer cheaper finance like Chinese firms. With installed capacity of over 21,000 Mw, India is fifth-largest wind power producer in the world after China, US, Germany and Spain. According to Centre for Wind Energy Technology India has potential to install over one lakh mw of wind turbines. Ministry of new and renewable energy and Indian Renewable Energy Development Agency are jointly planning to host an international meet in February next year to give impetus to the wind power sector. The ministry is also considering organising similar events to boost solar power. Courtesy: The Economic Times, New Delhi, 12.08.2014 29