Investment in wind energy sector will not be attractive to small captive investors as the Union Government removing the accelerated depreciation benefit for investors in wind mill projects from the last April 1.
K Kasthoorirangaian, Chairman of Indian Wind Power Association said that investors had the option to go in for accelerated deprecation or generation-based incentive. According to a recent notification of the Income-tax Department, for wind mills installed from April 1, 2012, depreciation is restricted to 15 per cent plus 20 per cent of the investment in wind mills, as against 80 per cent extended so far. The generation-based incentive scheme has also come to an end, he says.
In India, the total installed wind energy capacity is 16,167 mw and this includes 6,826 mw in Tamil Nadu (as on February 29, 2012). During the last two years, an average of 2,400 mw was added every year. Any investor should shell out 25-30 per cent of total investment from his resources to install a wind mill.