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New Delhi, July 18 (IANS): Acceding to demands from wind power generators, the government on Friday announced it was reinstating the accelerated depreciation (AD) scheme which was withdrawn two years ago.
"This is being done because of the many requests from the wind energy sector, number of concessions for which development have been made in this budget," Finance Minister Arun Jaitley said in parliament replying to the debate on the Budget for 2014-15.
"Necessary amendment will be made to the Finance Bill," Jaitley added.
The Accelerated Depreciation (AD) scheme and Generation-Based Incentive (GBI) scheme, which provided subsidies for setting up wind-generated power plants, were withdrawn in 2012. While investors and generators have been calling for its restoration, however, only the GBI has been restored so far.
Currently, the AD schme is available for investments in other sources of renewable energy.
Investments in 2011-2012 in the wind energy sector was around Rs.19,000 crore and 3,200 MW was commissioned. In 2012-2013, the investments came down to Rs.10,200 crore for 1,700 MW.