548.8Promotional PoliciesWind power development in the country has been spurred by a mix of promotional measures. The Government has introduceda package of incentives, which includes fiscal concessions such as 80% accelerated depreciation, tax holiday for power generationprojects, concessional customs and excise duty, liberalized foreign investment procedures, etc. SERCs of Andhra Pradesh,Madhya Pradesh, Karnataka and Maharashtra have so far announced preferential tariffs for wind power. Maharashtra ElectricityRegulatory Commission (MERC), Andhra Pradesh Electricity Regulatory Commission (APERC), Karnataka ElectricityRegulatory Commission (KERC), Madhya Pradesh Electricity Regulatory Commission (MPERC) and Orissa ElectricityRegulatory Commission (OERC) have directed that each distribution licensee shall purchase a minimum quantum of electricityannually from renewable sources expressed as a percentage of its total consumption. Rajasthan Govt. has recently modifiedtheir policy for Non-conventional Energy projects including for wind energy. The State-wise wind power installed with breakup of demonstration and commercial projects is given inTable 8.1 .8.9A High-Level Advisory Group on Wind Energy has recently been constituted to suggest measures for accelerating thedevelopment of the wind power sector in the country.8.10SMALL WIND ENERGY AND HYBRID SYSTEMSThe objectives of the Small Wind Energy & Hybrid Systems 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 themcost effective.8.11During 2005-06, implementation of the programme was continued through the State nodal agencies. Manufacturersof water pumping windmills, and wind-solar hybrid systems were also eligible to market the systems directly to users. TheCentral Financial Assistance (CFA) was provided through State nodal agencies. Presently, the programme is being implementedmainly in Gujarat, Karnataka, Maharashtra and West Bengal, although efforts are being made to extend it to other potentialstates.8.12Under the programme, a cumulative number of 1082 water pumping windmills have so far been installed, including 67windmills installed during April December 2005.Wind turbines installed at Sangneri, Tamilnadu