With the Union Government removing the accelerated depreciation benefit for investors in wind mill projects from April 1, 2012, investment in the wind energy sector will not be attractive to the small captive investors, according to K. Kasthoorirangaian, Chairman of Indian Wind Power Association.

Investors had the option to go in for accelerated deprecation or generation-based incentive. According to a recent notification of the Income-tax Department, for wind mills installed from April 1, 2012, depreciation is restricted to 15 per cent plus 20 per cent of the investment in wind mills, as against 80 per cent extended so far.