India plans to continue offering a subsidy to wind farm developers which rewards them based on the amount of power they generate and the incentive will continue beyond March 2012. Wind farms built by 31 March 2012, are eligible for the subsidy of Rs 500 per megawatt-hour of electricity they feed into the grid. The finance and renewable energy ministries both want to discontinue the accelerated depreciation benefit when the new tax code is introduced. Generation-based incentive is better because generator is paid for the power supplied while depreciation does not really do that.
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