Mumbai: Shares in Indian wind turbine
maker Suzlon Energy Ltd surged nearly 5 percent, its
daily limit, on Monday following the government's move to
re-introduce the accelerated depreciation scheme for the wind
The gains add to Suzlon's 3.6 percent gain in the previous
session. Finance Minister Arun Jaitley said on late Friday that
the government would amend the Finance Bill in this regard.
Accelerated depreciation allows companies to claim a bigger
deduction during the initial years after the purchase of an
asset compared with other depreciation accounting methods, under
which the cost is spread evenly over the lifespan of an asset.
The accelerated depreciation scheme was disallowed two years
ago under the previous Congress-led government.
Accelerated depreciation could spur more orders of wind
turbines and renewable assets and Suzlon would likely be a key
beneficiary as the world's fifth-largest wind turbine maker,
some analysts said.
"Accelerated depreciation will be significantly positive for
the wind turbine industry and Suzlon in particular," said G.
Chokkalingam, founder of Equinomics, a research and fund
Suzlon, whose units include REpower Systems SE, is the only
listed wind energy player in India. Its shares were up 4.85
percent at 25.95 rupees, outperforming a 0.6 percent gain in the
broader NSE index.