The restoration of the tax-saving ‘accelerated depreciation’ benefit for the wind industry comes at a time when profit-making enterprises are being coaxed to put up solar projects to save on taxes. (The ‘AD benefit’ allows a company to write down 80 per cent of the cost of the machinery as depreciation, thus lowering profits on which tax is calculated.)In States such as Tamil Nadu a number of “AD customers” have cropped up for the solar industry. Only on Wednesday, three textile manufacturers near Karur in Tamil Nadu announced that they had put up a 10 MW solar plant.

Source - http://www.thehindubusinessline.com