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Depreciation Benefits

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Biomass gasification based power plants can also avail of accelerated depreciation benefits, details of the same are provided below.

Item

Description

Accelerated Depreciation

According to IREDA

100 % depreciation in the first year can be claimed for the following power generation equipment      
1. Fluidized Bed Boilers
2. Back pressure, pass-out, controlled extraction, extraction and condensing turbine for Power generation with boilers
3. High efficiency boilers
4. Waste heat recovery equipment

According to MNRE

80% depreciation in the first year can be claimed for the following  equipment required

1. Back pressure, pass-out, controlled extraction, extraction–cum-condensing turbine for co-generation with pressure boilers

2. Vapour absorption refrigeration systems

3. Organic rankine cycle power systems

4. Low inlet pressures small steam turbines

Income Tax Holiday

Ten years tax holidays.

Customs and Excise Duty

Concessional customs and excise duty exemption for machinery and components for initial setting up of projects.

General Sales Tax

Exemption is available in certain States

Source: http://www.mnre.gov.in/

 

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