Government today exempted parts and components used in wind operated electricity generators (WOEG) like tower, rotor and blades from excise duty, a move aimed at promoting clean energy.
The Central Board of Excise and Customs(CBEC) in the Department of Revenue has issued a circular in this regard to reduce litigation and to improve ease of doing business in the important sector of non-conventional energy.
The circular clarifies that "parts such as tower, nacelle, rotor, blades, wind turbine controller etc of WOEG are eligible for exemption from Central Excise duty".
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The circular was issued after trade received references from trade regarding availability of exemption from excise duty to the parts and components of WOEG, popularly known as 'wind turbines'.
The government is focusing on renewable energy, considered as clean energy, to meet the country's growing power demand.
The target has been set at 175 GW renewable power generation, including 100 GW solar energy, 60 GW wind energy, and 10 GW from bio-mass.
