PROMOTIONAL POLICIES Both fiscal incentives and promotional measures initiated by the Ministry have helped the accelerated development of wind power development in the country.  The package of incentives available for wind energy projects included tax concessions such as 80 per cent accelerated depreciation, tax holiday for power generation projects, loans from IREDA, customs and excise duty relief, liberalised foreign investment procedures, etc. Preferential tariff are being reviewed by the State Electricity Regulatory Commissions (ERCs). Three States namely Andhra Pradesh, Madhya Pradesh and Maharashtra have so far announced promotional policies through their respective ERCs. The Maharashtra Electricity Regulatory Commission (MERC) has recently passed its order for making purchase of electricity generated from renewable sources obligatory for all utilities in Maharashtra. This Renewable Purchase Obligation (RPO) shall be applicable from financial year 2004-05. The operational details of mechanism are being worked out. Karnataka Electricity Regulatory Commission has directed that each distribution licencee shall purchase a minimum quantum of 5% and maximum quantum of 10% electricity annually from renewable sources expressed as a percentage of its total consumption. SMALL WIND ENERGY AND HYBRID SYSTEMS Small wind energy systems, namely water pumping windmills, aerogenerators and wind-solar hybrid systems can also be used for harnessing wind power potential, in addition to the large capacity wind turbines. These systems have been found to be very useful for meeting water pumping and small power requirements in decentralised mode in rural and remote windy areas of the country, which are unelectrified or have intermittent electric supply. The Ministry has been implementing a programme on “Small Wind Energy & Hybrid Systems” for promoting these systems in the country through the State nodal agencies. The main objectives of the programme are: (i)                    Field testing, demonstration, strengthening manufacturing base, training and awareness of water pumping windmills, aerogenerators/ hybrid systems, and (ii)                  Undertaking research & development for improvement of designs and efficiency of these systems, and also to make them cost effective.

	Among the different renewable energy sources, wind energy is currently making a significant contribution to the installed capacity of power generation, and is emerging as a competitive option. The programme covers research and development, survey and assessment of wind resources, implementation of demonstration and private sector projects and promotional policies. As a result, India, with an installed capacity of about 3000 MW, ranks fifth in the world after Germany, USA, Spain and Denmark in wind power generation. WIND RESOURCE ASSESSMENT Onshore wind power potential has been assessed at 45,000 MW assuming 1% of land availability for wind power generation in the potential areas. However, technical potential is limited to only 13,000 MW assuming 20% grid penetration, which will go up with the augmentation of grid capacity in potential states. State-wise gross and present exploitable technical potential is given