The wind industry is divided over abolition of ‘accelerated depreciation‘ benefit (which allowed higher depreciation for calculating taxable profits in the first year of buying a wind turbine.) While the Indian Wind Turbine Manufacturers’ Association (IWTMA) has expressed dismay over the scrapping of AD, and has called for its restoration, a section of wind power developers have welcomed the move.
In a related development, several wind power developers, who met on Wednesday, have decided to form a new association, which is likely to be called Wind IPPs Association. It is learnt that Independent Power Producers Green Infra, Renew Power and Mytra Energy are among those who pioneered the formation of this association.
The proponents of the proposed Wind IPP Association feel that their issues are “different” and hence a new body.
They say that in the last one year private equity investments of $1 billion have flowed into wind IPPs in India, and therefore a “separate voice” is required. They point out that after all, if there is a problem with coal, it is companies like Tata Power and Lanco that go to the Government, not BHEL or L&T.
Source: Hindu Business Line