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N. Ramakrishnan

Chennai , Feb. 24

THE Ramco group, with interests in textiles and cement, plans to add about 14 MW of wind energy capacity by the first half of the next financial year.

It will spend about Rs 50 crore on increasing its wind energy capacity, which is now 70.8 MW.

The textile mills in the group are going in for capacity expansion at a cost of Rs 180 crore, including the cost of the wind turbines. The idea behind increasing their wind energy capacity is that it will reduce their cost of power, as it will bring down their dependence on grid power.

At present, wind power accounts for 60-86 per cent of the energy requirement of the textile companies in the group, according to Mr A.V. Dharmakrishnan, Senior Vice-President - Finance, Madras Cements Ltd, which has about 33 MW of installed wind power accounting for 60 per cent of its energy requirement.

Ramco Industries, which has fibre cement sheet and textile divisions, has installed 3.75 MW of wind power accounting for 85.83 per cent of its energy requirement of 120 lakh units a year.

Asked about suggestions that tax credit be given to wind energy producers rather than accelerated depreciation, Mr Dharmakrishnan said the tax credits system was not workable since many agencies were involved and the whole process would become cumbersome. So far, he pointed out, companies had invested in wind power only because of the accelerated depreciation benefits that were given to them rather than tax credit, which was difficult to administer.

In this connection, the Indian Wind Power Association, of which Mr P.R. Ramasubrahmaneya Rajha, Chairman of the Ramco group, is the chairman, has represented to the Union Finance Ministry to continue with the accelerated depreciation provision for those investing in wind energy. The Centre was giving 100 per cent depreciation but this was reduced to 80 per cent.

The association wants it restored to 100 per cent. In a representation to the Union Finance Ministry, the association has also suggested that, as a measure to promote wind energy, the Centre could consider setting up a technology upgradation fund for the wind sector, as had been created for the textile sector, to provide an interest subsidy for investments in wind energy.

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