CENTRAL FISCAL INCENTIVES
Ministry of Finance
A. Direct Taxes
As per Notification no. S.O 2399 (E) dated 16.09.2014, Govt. of India, Ministry of Finance, Department of Revenue, the AD @ 80% for wind mills installed on or after 01.04.2014 shall be allowed,
Exemption on Income Tax on earnings from the Project u/sec 80IA for 10 years.
B. Indirect Taxes
For Wind Power Generators, Custom Duty is 7.5%
For Wind Power Generators, Excise Duty is 10.0%
Ministry of New & Renewable Energy
Generation Based Incentive (GBI) for Grid Interactive Wind Power Projects (MNRE Circular No â€“ S3/10/2011 â€“ WG dated 04.09.2013)
The main features of the scheme are:
Under the scheme, a GBI will be provided to Wind Electricity Producers @ Rs. 0.50 per unit of electricity fed into the grid for a period not less than 4 years and a maximum period of 10 years with a cap of Rs.100 Lakhs per MW.
The total disbursement in a year will not exceed one fourth of the maximum limit of the incentive i.e Rs.25 Lakhs per MW during the first four years.
The GBI scheme will be applicable for entire 12th Plan period having a target of 15000 MW
The GBI scheme would be implemented in parallel with existing fiscal incentive for grid connected Wind Power Projects.
The detailed guidelines under implementation for the GBI scheme during 11th Plan will continue and will be modified from time to time.
The Companies shall be allowed to avail either AD or GBI but not both.
The GBI would be implemented through IREDA. All wind power producers are required to be registered with IREDA.
The financial liability during the 12th plan is estimated to be Rs.4500 Crore (including the committed liability towards the projects commissioned during 11th plan period under the GBI Scheme existed at that point of time).