India approved the reinstatement of a wind-farm subsidy after its expiry last year contributed to a 42 percent plunge in turbine installations.
The Cabinet approved the proposal to revive the generation-based incentive for wind farms of 500 rupees ($8.20) a megawatt-hour, Ministry of New and Renewable Energy Joint Secretary Alok Srivastava said today in an e-mailed response to questions.
It also agreed to raise the cap on the total subsidy a wind farm can claim over 10 years by 61 percent to 10 million rupees. Wind farms built between 2012 to 2017 will be eligible for the subsidy, Srivastava said.
Suzlon Energy Ltd., India’s biggest publicly traded turbine maker, advanced 4.4 percent to 7.1 rupees by the close of Mumbai trading, paring its loss for the year to 62 percent.
The subsidy expired March 31, 2012, stalling turbine orders for producers including Suzlon and Gamesa Corp Tecnologica SA. The slump in installations in the financial year that followed toppled India from its place as the world’s third-biggest market for the industry, according to data compiled by Bloomberg.