Generation Based Incentive (GBI) is an incentive scheme launched by Ministry for New & Renewable Energy, Government of India to encourage development of wind projects as a long term business model and to encourage private developers to setup wind projects. This scheme is applicable to those projects which has not enjoyed the accelerated depreciation benefit. Under the scheme, a GBI will be provided to wind electricity producers @ Rs. 0.50 per unit of electricity fed into the grid for a period not less than 4 years and a maximum period of 10 years in parallel with accelerated depreciation on a mutually exclusive manner, with a cap of Rs. 62 lakhs per MW. The total disbursement in a year will not exceed one fourth of the maximum limit of the incentive i.e. Rs.15.50 lakhs per MW during the first four years. The scheme was applicable to a maximum capacity limited to 4000 MW during the remaining period of 11th Plan period. The provision of GBI will continue till the end of 11th Plan period.
MNRE has appointed IREDA as the nodal agency for registration of projects and distribution of the incentives.
Detailed Implementation mechanism of GBI
The government will reintroduce “Generation Based Incentives” for wind power projects after a break of one year to boost capacity addition in the sector, said Finance Minister P Chidambaram while presenting the Union Budget 2013-14. The minister said that Rs 800 crore would be allocated to the Ministry of New and Renewable Energy to support the incentive.
Relevant Article is provided herewith
Latest Update on GBI:
Extension of the scheme for continuation of Generation Based Incentive for Grid interactive Wind power projects for 12th plan period
GBI will be provided to wind electricity producers @ Rs. 0.50 per unit of electricity fed into the grid for a period not less than 4 years and maximum period of 10 years with a cap of Rs. 100 lakhs per MW. The total disbursement in a year will not exceed one fourth of the maximum limit of the incentive i.e. Rs.25.00 lakhs per MW during the first four years.
The GBI scheme would be implemented in parallel with existing fiscal incentive for grid connected wind power projects.
Relevant Regulation issued by MNRE is provided herewith