India prepares perks for wind power developers

Could revive tax breaks and hike subsidies.

India is considering the perks after the wind sector’s market size fell by almost half following expiry of a subsidy program.

The Ministry of New and Renewable Energy has proposed reintroducing tax depreciation benefits for wind-farm owners and increasing an alternate generation-based subsidy. The proposal awaits Cabinet approval.

Investment in the wind sector plummeted after he two incentives expired in March 2012, stalling turbine orders for manufacturers. Installations plunged 47% in the last fiscal year, toppling India from its place as the world’s third-biggest market for wind turbines.

Wind project investors could claim the benefits retroactively from April 1, 2012 should the tax breaks be revived.