Setting up wind turbine farms

It takes 1 crore to set up a 250 kW wind turbine, and banks subsidize this by 70%. It seems 30-35 lacks would be just about enough! The MP Windfarms Association is leveraging this by inviting investments from private investors, and using it to set up wind turbine farms in a profitable manner by selling the energy to state grids. I would call this social entrepreneurism.

To quote from the article:

1. As wind energy comes under non-conventional energy it gets a tax break of 80 per cent as depreciation during the first year.
2. Banks provide 70 per cent of the project cost as loans at 9 per cent interest for installation of wind energy. The minimum cost of installation works out to Rs 1 crore for a 250 kw wind turbine. Thus, an individual will have to bring in Rs 30-35 lakh upfront, while the balance can be funded through bank loans.
3. The energy produced can be sold to state electricity boards. In the first year of operations, almost half the amount that individuals invest – close to Rs 14 lakh – can be earned as revenues. The proceeds can be used to pay off part of the loan as well.
4. Cost of operation, maintenance and insurance works out to Rs 40,000-50,000 a year. Wind turbine manufacturers give a one-year warranty on an installed turbine.