In a relief to wind energy projects, the government has restored the accelerated depreciation scheme for the sector.
Generally, accelerated depreciation refers to calculation that allows for higher deductions towards deprecation in the early life time of an asset.
“To encourage the wind energy programme, there is an accelerated depreciation. There was a confusion whether we have extended it or not. Members wanted it to be extended. I am, therefore, continuing with that accelerated depreciation,” Finance Minister Arun Jaitley informed the Lok Sabha today.
He was replying to a debate on the Finance Bill.
The scheme, which had benefited the wind energy sector, was withdrawn by the earlier government in 2012.
At the end of March, the installed wind power generation capacity stood at more than 21,000 MW.