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Doing away with accelerated depreciation benefit to wind power generators has hit competitiveness of small and medium enterprises sector, the largest investors in captive wind power projects, according to the Indian Wind Power Association.
According to a press release, the Association has urged the Union Government to restore the accelerated depreciation benefits which it had removed as of April last year.
The SME sector, including foundry and textile units, put up captive wind mills using the Accelerated Depreciation provided by the Centre.
Wind energy was cheaper than the conventional electricity available over the grid and also the supply was assured.
The low-cost electricity helped the competitiveness of the manufacturers. Independent rating agencies including Crisil, the Association’s advisor, say that investments in wind energy have dropped by more than 50 per cent after the withdrawal of the benefit.
Accelerated Depreciation is not a dole or subsidy but a tax deferral and is revenue neutral in seven years, said the release quoting K. Kasturirangaian, the association’s chairman.
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