With Tamil Nadu and Maharashtra nearing their potential, other new states like Madhya Pradesh, Andhra Pradesh are favourable destinations for wind power projects with attractive policies and tariff. Rajasthan and Madhya Pradesh have seen a rise in number capacity additions compared to last year. While Tamil Nadu offers Rs.3.71 Rajasthan Government offers the highest tariff of Rs.5.72 for wind power.
Projects in Tamil Nadu and Maharashtra are not seeing new capacity additions but are executing earlier planned projects. Karnataka is doing well, with several companies looking to put up windmills for tax saving under the accelerated depreciation scheme where companies get to write off 80% of the project costs as depreciation in the first year to save taxes. However, this will result in investors just to look for tax benefit than in investing optimum technology and higher generation.
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