Daily Archives: August 26, 2007

Climate resistant agriculture

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Reuters reports:

Ren Wang, director for the Consultative Group on International Agricultural Research (CGIAR), told Reuters that new crop varieties, such as drought-resistant rice, were crucial for securing food supply, especially as populations continue to grow.

Creating new species, which would allow farmers to adapt to increasing extreme weather conditions, is possible only via enforced partnerships, the Chinese scientist said.

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“We have seen increased incidents of droughts and flood. All of these pose particular threats to the world food supply,” Wang said this week via telephone.

“We have seen dramatic increases in prices of corn or wheat … Indonesia faces a really severe shortage of rice supply.”

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He said a new sorghum developed at a CGIAR centre in India contained more sugar in its stalk, raising hopes of growing biofuel crops to boost farmers’ income without endangering food supply.

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But among conventional new varieties, developed by CGIAR, Wang expected drought-resistant, high-yield rice to be introduced in the next 3-5 years in India, where many fields are not irrigated.

Submergence-tolerant rice, developed last year, will also reach farmers in Bangladesh, India, Laos, Vietnam and Cambodia.

Adaptation is crucial in the coming years, especially for poor and developing countries. Technology can assist greatly in this endeavour and help combat poverty.

Tax incentives for Wind Farms in India

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The Hindustan Times reports of the tax breaks for companies and individuals for investing in green energy, especially Wind Farms.

WORRIED ABOUT your taxes? Take a look at one way how companies and high net worth individuals are reducing theirs – by buying windmills. The income-tax laws allow 80 per cent of the cost of the windmill to be set off against taxable income.

Private sector wind energy players have woken up to this opportunity and are offering investments in wind farms that they set up. In a shared wind farm, other companies can own anything from a single wind turbine to the entire farm. The electricity generated is sold to the state electricity board where the wind farm is situated. If an owner of a windmill wants to use the power he can draw it back from the board at a different point.

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Mehta says the electricity being generated will begin to bring in revenues from the second year. If the owner can show itself as a power sector operator, it can gain more benefits under Section 80 (i)(a), under which income from power generation can get a tax holiday for 10 years. Now other companies like Enercon India and Vestas RRB have followed Suzlon with their own wind farms. In fact, wind energy is not the only form of green energy that enjoys that benefit, but this has become commercially viable. This benefit is also allowed for, among others, investments in biogas and solar energy too. Sun farms any one?

The interesting thing is that wind farms are commercially viable now, atleast in India and hence, the investments in them. However, the article was written from the angle of “ways to pay less tax, legally” style. The bigger picture is whether the tax break is driving an investment in wind farms.