Power and Coal Minister meets investors in wind sector

Union Minister of Power, Coal and new Renewable Energy Shri Piyush Goyal held a meeting with all the stakeholders in wind sector here today.

The representatives from Indian Wind Turbine Manufacturers Association (IWTMA), Wind Independent Power Producers Association (WIPPA), Indian Wind Energy Association (InWEA) and Indian Wind Power Association (IWPA) were present for discussions. The officers from MNRE, IREDA and C-WET were also present.

Detailed discussion on various issues in the sector was held and suggestions for remedial solutions were invited. The industry emphasized that Accelerated Depreciation (AD) benefit is a deferment of income tax and it should be restored.

It was requested that government should increase funding for Generation Based Incentive (GBI) as there is pending claims of GBI of around 300 crore. Augmentation of transmission and evacuation facilities by state government is another major issue, which needs improvement.

In order to increase the corpus under National Clean Energy Fund (NCEF), the Cess on coal may be increased fromRs.50 to Rs.100 per ton. There should be long term sustainable regulatory framework for big project planning. Need for the enforcement of Renewable Purchase Obligation (RPO) was emphasized as it will create market for REC mechanism.

The route of Feed-in-tariff (FIT) was requested to be continued. Timely payment of electricity generated from wind projects is necessary. A Payment Guarantee Fund was proposed. The renewables should be categorized under the “Priority Sector” by RBI.

The Minister told that the issues and problems in wind sector will be looked by the Ministry and suitable actions will be taken. He said that the restoration of AD benefit has been taken up by MNRE with Ministry of Finance. Regarding additional funding for GBI and other activities, he will take it up with Ministry of Finance.

Shri Goyal asked IREDA to simplify the procedure for GBI releases and make it more transparent. Minister informed that a Global Investors Meet of all renewables will be organized in November, 2014.