To help promote power generation through renewable sources of energy, the government today reduced the basic customs duty to 5 per cent on permanent magnets, a major component for wind power projects.
"I am reducing the basic customs duty on permanent magnets-- a critical component for Wind Operated Electricity Generators from 7.5 to 5 per cent," Finance Minister Pranab Mukherjee today said while presenting the Annual Budget.
"It is imperative that the contribution of new and renewable energy sources of power is enhanced if we have to successfully combat the phenomena of global warming and climate change," he said.
"It is a welcome decision, we will see the Budget document and access how helpful will it be for the industry," Indian Wind Turbine Manufacturers Association Honorary Secretary V D Kalani told PTI.
The Ministry of New and Renewable Energy (MNRE) has fixed a target of 10,500 MW wind power during the current XIth Five Year Plan Period (2007-12).
During the 10th Plan (2002-2007), India saw installation of 5,426 Mw of wind power generation capacity, as against the target of 2,200 Mw.
India is currently the fourth-largest generator of wind power in the world with a capacity of 8,696 Mw.
