Keep the windmills turning

Rakesh Kumar Kubde November 20th, 2012 0

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At a time when every country in the world is trying to get its nose into renewable energy, what with concerns over environment and fossil-fuel geopolitics, Indias contribution seems to be practically nothing more than mouthing shibboleths. A good instance of this is the regression in the wind-power sector last year, India added 3,100 MW of wind power capacity, but this year, going by the record of the first half, some 1,500 MW seems optimistic. While there are many reasons for this, such as grid problems in the windiest State (Tamil Nadu), difficulties in acquiring land and the slowdown in the Indian economy, the most disturbing factor can be attributed directly to the Union Government red tape. From time to time, Minister for New and Renewable Energy Farooq Abdullah has been saying in public that a generation-based incentive scheme would be brought. The scheme pays a fixed sum for a unit of electricity generated. A similar earlier scheme expired in March this year. The Ministry is now believed to have recommended 81 paise for a kWh and the proposal in favour of the scheme is currently under the active consideration of the Ministry of Finance. Hurting industry It has been under active consideration for months now. Fair enough. No fair-minded, person would expect the Finance Ministry to blindly sign on a proposal that

involves considerable outflow of money from the Government, especially at a time when it is grappling with a recalcitrant fiscal deficit. But the avoidable uncertainty around it is killing the industry.