India: Supporting Wind Power with Tax Incentives and Ensuring Project Sustainability

India’s domestic income tax law provides a 10-year tax holiday for wind generation and distribution projects, if power generation began before 31 March 2014. Under this policy, wind operations pay a minimum alternative tax of approximately 20% (based on income). After 10 years of operation, the tax can be offset. This policy design element helps to ensure ongoing operation of the plant and sustainable deployment outcomes (Boekhoudt and Behrendt 2014).