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R.Y. Narayanan

COIMBATORE, Sept. 20

THE Indian Wind Power Association (IWPA), Chennai, has sought a slew of policy initiatives from the State electricity boards, the Ministry of Non-Conventional Energy Sources (MNES) and from Indian Renewable Energy Development Agency Ltd (IREDA) to provide a fillip to the industry. It also wants the Finance Ministry to provide tax incentives for investment in the sector.

Mr K. Kasthurirangaian, Vice-Chairman of IWPA, said the Wind Power Producers' Association, Chennai had broadened its base by inducting into its fold manufacturers of wind power equipment, component manufacturers, consultants, etc., and has changed its name as Indian Wind Power Association (IWPA) to reflect its new representative character.

He said IWPA, at its meeting here on Wednesday, wanted MNES to formulate a national policy for the promotion of wind energy and accord infrastructure status to this sector. At least 10 per cent capacity of any additional power generation scheme should come from renewable energy source and utilities should purchase at least five per cent of their energy requirements from renewable energy sources at MNES-suggested price. He said the association also wanted that IREDA should reduce interest rates to less than 10 per cent on existing and new loans.

He said wind and solar energy should be declared as national resources and should not be taxed. To give a fillip to this sector, green bonds should be floated and contributions up to Rs 10,000 per year should be exempted from I-T. The minimum alternative tax (MAT) should be waived in case of investment in renewable energy and the 100 per cent accelerated depreciation should be continued for 10 more years.

Mr Kasthurirangaian said the association also wanted that the Tamil Nadu Electricity Board (TNEB) to implement the High Court judgement on VAR drawal charges and it should not collect any charges from those who maintained a power factor of 0.85 and above. The board should also pay for the power purchased within 45 days.

He said TNEB should increase the price it paid for wind power purchased from the producers to Rs 3.16 per unit as against Rs 2.70 per unit it was paying now and there should be five per cent annual price escalation. Third party sale of power produced should be permitted and the wheeling and banking charges should be rolled back to two per cent from the five per cent levied now.

The IWPA meeting wanted the electricity boards in Andhra Pradesh, Karnataka and Gujarat to permit third-party sale of power and to limit the wheeling charges to two per cent as per MNES guidelines.

The meeting also elected the following as office bearers for 2002-03: Chairman - Mr P.R. Ramasubrahmaneya Rajha (CMD, Madras Cements); Vice-Chairmen - Mr K. Kasthurirangaian and Mr Vijay Gupta; Hon. Secretary - Mr S.V. Arumugam; Hon. Treasurer - Mr R. Pattabi.

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