Wind energy has been the poster child of India’s renewable energy programme. Data released by the government shows the staggering pace at which wind farms have been added across the country. But most of them deliver only a fraction of their generation potential, according to the Union Ministry of New and Renewable Energy (MNRE). This is due to use of obsolete equipment. The electricity regulators now want to discipline this errant child—no tax holidays, and payment subject to performance. But this is likely to happen if the industry agrees to the new direct tax code, which withdraws sops to the industry.
May 15, 2011