Wind energy industry calls for restoration of accelerated depreciation
Wind Turbine Manufacturers Association has submitted pre-budget memorandum to the Ministry of Finance and recommended to reinstate the accelerated depreciation for wind energy sector
The Indian Wind Turbine Manufacturers Association (IWTMA) has appealed the central government to continue with the accelerated depreciation (AD) as an incentive for the wind energy sector. D. V. Giri, Secretary General, IWTMA, recently submitted the pre-budget memorandum for the Union Budget 2013-2014 to the Joint Secretary, Tax Research Unit of the Department of Revenue under the Ministry of Finance.
In the memorandum, the association has stated that the wind sector has been severely hit post March 31, 2012 after the discontinuation of the AD, which has reflected in capacity addition during the first half of the year. As the incentive tool is offered to other renewable energy, the memorandum has requested the ministry to reinstate the AD for wind energy sector.The wind energy industry has also requested the government to waive the uniform customs duty of 5 per cent for components used for wind energy generation. In its memorandum, the sector has also demanded inclusion of wind energy project under the priority lending category for fast implementation of projects. The association has brought up the necessity of lowering the interest rate and longer tenure of lending for wind sector.
IWTMA has also highlighted a series of concerns to be addressed through the Union Budget 2013-2014:
To reinstate Concessional Customs Duty Certificate (CCDC) benefit to raw material and parts suppliers to wind turbine blades
Appealed to include construction activities involved in the installation of wind power projects, operation and maintenance work in the specified infrastructure and be exempted from service tax
To exclude “H-Glass Roving” from the anti-dumping duty notified vide notification as there are no roving manufactures for specific high-performance glass fabrics in the country
To add a clause for a stricter compliance of the renewable purchase obligation (RPO) by the states with a penalty. The wind industry assures this will help the Renewable Energy Certificate (REC) market, which was trading at the floor price and having many certificates unsold
To incentivise manufactures those are increasing the percentage of localisation in manufacturing
To consider the utilisation of green energy fund that was announced in 2010.
As the existing incentive under sunset clause of Section 80 IA is expiring in the current financial year, the association has called for its extension for setting up of the project up to March 31, 2020.