Denmark's Vestas plans return to India - report

Jul 22, 2014 - Danish wind turbine maker Vestas Wind Systems A/S (CPH:VWS) is to restart its operations in India following two years of silence, the Hindu Business Line said yesterday, citing insiders.

According to the report, the company will reopen its Indian business under the leadership of Jorn Hammer who will act as the managing director of Vestas India. The sources have noted that the company is returning with a new business plan for the country.

Vestas’ current objectives for India include the appointment of a head of construction, head of public affairs and a business analysts among others. The firm is, in the meantime, working on an order to supply 11 turbines for a client in Gujarat, the Business Line added.

The rumoured return of Vestas coincides with the Indian government’s decision to will revive the accelerated depreciation (AD) scheme for wind farms that was ended in 2012. Before it was withdrawn alongside the Generation-Based Incentive (GBI), the AD scheme allowed investors to write down up to 80% of the project cost as depreciation when calculating taxable profits. Eventually, the GBI was restored, but the AD is currently only available for investments in other renewable energy sources. It is expected to be revived by the end of the month.

Choose your newsletter by Renewables Now. Join for free!