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Table 3 Financial and fiscal incentives for wind power projects in India

From: Potential of wind power projects under the Clean Development Mechanism in India

Type of incentive Description Rate
I. Indirect Taxes i) Wind operated electricity generators upto 30 kW and wind operated battery chargers upto 30 kW. 5%
  ii) Parts of wind operated electricity generators for manufacturer of wind operated electricity generators, namely: Special bearing, Gear Box, Yaw components, Wind turbine controllers. 5%
  Sensors, Brake hydraulics, Flexible coupling, Brake callipers. 25%
  iii) Blades for rotor of wind operated electricity generators for the manufacturers or the manufacturers of wind operated electricity generators. 5%
  iv) Parts for the manufacturer or the maintenance of blades for rotor of wind operated electricity generation. 5%
  v) Raw materials for manufacturer of blades for rotor of wind operated electricity generators. 5%
II. Excise Duty Devices/Systems exempted from Excise Duty:  
  i) Wind operated electricity generator, its components and parts thereof including rotor and wind turbine controller.  
  ii) Water pumping wind mills, wind aero-generators and battery chargers. [Notification No.6/2002 dated 01/03/2002 (S.No.237 non-conventional devices/systems)]  
III. Sales Tax Exemption/reduction in Central Sales Tax and General Sales Tax are available on sale of renewable energy equipment in various states.  
  i) 80% Accelerated Depreciation on specified Non-conventional Renewable Energy devices/systems (including wind power equipment) in the first year of installation of the projects.  
  ii) Tax Holiday on Power Projects.  
  1. Sources: Ministry of Non-conventional Energy Sources, Government of India, New Delhi