Suzlon in shady deals

Wind power developers like Suzlon Energy are suspected to have cajoled state governments into helping them acquire land for their wind farms at concessional rates

Noor Mohammad Delhi Hardnews

The Indian government is offering lucrative fiscal sops to promote wind power, a green source of energy, as part of its strategy to control carbon emissions and protect environment. Besides, states like Maharashtra with rich potential in wind power generation are also helping developers in acquiring land at less than market price. However, it seems that the government's well-intentioned policy is not working on the ground. Instead of providing support for the efforts to make the environment greener, the liberal policy has become a tool in the hands of corporate houses like Suzlon Energy to grab tribals' land even as they enjoy tax exemption on their investment in wind power generation.

Under the existing policy, investment in wind power generation is eligible for 80 per cent depreciation. That means, if a corporate house has income tax liability of Rs 100 crore, it can save Rs 80 crore in taxes by investing Rs 100 crore in wind power generation. By this sleight of hand, the company can convert its tax liability into an investment. Even if the company does not make any profit on its investment, it does not need to worry as it has not had to spend money for the investment.

Meanwhile, wind power developers like Suzlon Energy are suspected to have cajoled state governments into helping them to acquire land for their wind farms at concessional rates. What has happened at Dhule in Maharashtra gives credence to this suspicion.

Suzlon has created an installed capacity of about 650 MW in Dhule in the last two-three years and its clients include large companies such as British Petroleum (BP). It plans to have an installed capacity of over 1,000 MW on completion at Dhule, to create the largest wind farm in the world at a single location.

For the present installed capacity, Suzlon has been provided 340 ha of forest land. The state's Renewable Energy Policy allows diversion of forest land for establishment of wind farms.

Bowing to pressure from the Opposition, the Maharashtra government recently ordered a high-level inquiry into wind turbine maker Suzlon Energy's land deals in the past two to three years at Dhule and Nandurbar, where it is setting up the world's largest wind energy park.

"The government has connived with Suzlon to transfer the land. This is adivasi land and must be handed over," Kishore Dhamale, coordinator of local NGO Satyashodhak Grameen Kashtakari Sabha, which is campaigning for land rights of adivasis and forest dwellers for the last 40 years, was quoted as saying.