Group items tagged

The 12th Plan (v/s 11th Plan) renewable capacity addition to slowdown CARE Research expects the 12th Plan (2012-17) the renewable especially wind capacity addition to slowdown due to removal of tax benefit. However, wind capacity addition is likely to maintain its dominant share in the capacity addition. At present, the policy environment needs a boost to achieve as removal of Accelerated Depreciation (AD) scheme from April, 2012 is likely to act as dampener resulting into sharp slowdown in wind capacity addition in the 12th Plan. Moreover, solar capacity addition is purely RPO driven; hence institutional framework needs to be strengthened for higher and sustainable capacity addition run-rate. Finally, State level policy issues related to Small Hydro Power (SHP), Biomass, Co-generation, Waste-to-Energy (WtE) sectors need to be sorted out to improve 12th Plan capacity addition. With AD benefit removed, capacity addition to fall; IRR to shrink by 300-400bps  AD benefit was removed from April 1, 2012, which was a major driver for wind installations in the 11th Plan. The country added 3.2GW of wind capacity in FY12 (last year of the 11th Plan), which is expected to fall sharply due to AD benefit removal. Consequently, CARE Research expects capacity addition to fall to sharply from FY13 onwards. The Central Board of Direct Taxes (CBDT) issued a notification on 30th March 2012, that the depreciation on wind mills will be restricted to 15% from the current financial year (with and additional 20% depreciation on equipments). This marks a significant change to the incentive structure as AD benefit typically increases project IRR by around 300-400bps, with other factors held constant. Thus, the industry would move strongly towards IPPs driven from a typical retail investor driven structure a few years ago. Indian capacity glut to pressurise WTG margins; ancillary market to deepen  Indian wind market is primarily small captive player driven which used to invest in wind t

The shipbuilding market for the oil and gas fleet of Russian and CIS countries is the most rapidly growing regional market. By 2022 the aggregate requirements of Russian and CIS seas and inland bodies of water will amount to about 500 units of tankers, LNG carriers, supply vessels, drilling and production platforms. To meet this demand, new dry docks are being built in the region, including by foreign majors.