The Government of India's incentives to stimulate development of renewably generated power are among the most extensive in the world. The central government offers deep tax concessions, below-market financing, and other schemes designed to promote renewable power development. In several states, State Electricity Boards will buy power from renewable developers at quoted rates and allow them to sell power elsewhere using the transmission system. In February 1997, the central ministry announced that it expects 10% (1,000 megawatts) per year of new capacity additions to come from renewables. Specialized programs and policies for renewables have stimulated their market penetration, but they also isolated renewables from mainstream power sector decisionmaking under the Ministry of Power. India's power sector reforms have proceeded largely independently of its policies for renewable energy. As power sector reforms and privatization move ahead, separate policies and subsidies for renewables will become difficult to maintain. In addition, the overall trend of devolution of political power to the states means that each state's reform policy will become more important.