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India Announces Tax Incentives For Wind Turbine Equipment

Of late the solar power sector in India has enjoyed bulk of the attention from Indian policymakers looking to make the 100 GW by 2022 installed capacity target a reality. However, the wind energy sector also now has something to cheer about.

The central government has announced that wind turbine equipment will not attract central excise duty. This tax is to be paid for the manufacture and sales of products. The equipment exempt from excise duty include towers, nacelles, rotors, blades, and wind turbine controllers.

The exemption will benefit a large number of wind turbine manufacturers active in India. Some of the leading manufacturers include Gamesa India, Suzlon Energy, Inox Wind, and Vestas.

India plans to have an installed wind energy capacity of 60 GW by March 2022. At the end of August 2015, just over 24 GW of wind energy capacity was operational in India.

The country also recently announced a national offshore wind energy policy under which auction for project sites would take place early next year. Suzlon Energy is believed to be the only Indian manufacturer with some experience with offshore wind turbines, meaning that the Indian Government would like foreign manufacturers such as Gamesa, Vestas, and Siemens to expand and set up manufacturing facilities in India — thus the exemption.

At this year’s international renewable energy investors summit, organised by the Ministry of New & Renewable Energy (MNRE) in February, developers pledged to set up almost 48 GW of wind energy capacity over the next 5-7 years. Eight wind turbine manufacturers also pledged to manufacture over 36 GW of wind turbines during the same period. Suzlon Energy targets production of 11 GW, Gamesa 7.5 GW, and Inox Wind 5 GW.


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Written By

Smiti works as a senior solar engineer at a reputed engineering and management consultancy. She has conducted due diligence of several solar PV projects in India and Southeast Asia. She has keen interest in renewable energy, green buildings, environmental sustainability, and biofuels. She currently resides in New Delhi, India.


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