The Hindu Business Line : `Policymakers must give topmost priority to wind energy'

HAVING set up the biggest wind company in India, Mr Tulsi Tanti, Chairman and Managing Director, Suzlon Energy Ltd, saw its IPO getting over subscribed 28 times recently. The Suzlon scrip closed at Rs 933.60 on Wednesday. In an interview with Business Line, Mr Tanti shared his visions for fresh initiatives in the wind power sector.

Can you shed some light on your upcoming projects in China and South Korea?

We would be setting up a 600 MW wind power facility at Tianjin, close to Beijing. By June 2006, we will start the production there. We have already secured our first project of 50 MW, which is valued at Rs 172 crore.

Currently, the Chinese market for wind power is only 300 MW but it has grown rapidly in the last three years and will grow exponentially in the coming years. China is part of our strategic plan and we have opened offices in Beijing and Shanghai.

China has realised that it cannot depend on one source of energy for growth and it has a potential for 2,50,000 MW wind power sites. By January 1, a new wind energy policy is expected to come into force.

The South Korean market is much smaller; it will only grow to 1,000 MW by 2010, at an annual addition of 100 MW. Still, it is an important market for us. Since we have presence in China and India, logistically it is easy to ship goods there. We have received our first order of Rs 57 crore for a 15 MW wind energy project from South Korea.

What is progress on your Pipestone project in the US?

The US is our second biggest customer. We are setting up a rotor blade plant in Pipestone, Minnesota. By June 2006, we will have 300 employees working at Pipestone, up from 45 employees now. The US government has been helpful in terms of land acquisition and fiscal support

The total capital outlay in the Pipestone project is $ 20 million - for rotor blades production. We would also provide operation and maintenance service for 20 years at the site.

What are your plans for India?

Except Kerala, we have presence in all the seven wind surplus States of the country. We are expanding production capacity at our Pondicherry facility. At the Dhule facility, our capital expenditure would be Rs 60 crore, which would go in for rotor blades and wind towers. At our Kutch facility, we will be investing Rs 25 crore. Thus, we are talking of a Rs 100-crore plan to be completed by June 2006.

Investment in wind energy is seen as tax saving option in India. Has this model changed where wind energy has become the main business in the country?

Wind energy is already a matured industry, across the world as well in India. India has emerged at the third largest producer of wind energy in the world. An assured return on investment for 20 years is a proposition that is attracting companies in India in a big way to this sector.

What are policy changes you seek at the Government level for this industry?

Policymakers should give it topmost priority. It should not be compared with the conventional power sector and should have its own identity. Wind energy is compared with other energy sources like gas and hydropower. Wind power is expensive but it does not require fuel and this rules out any escalation in your cost of production, once installed. We have the potential to have 45,000 MW in the country.

What is your outlook on this sector?

We could delay our fuel imports by investing in this renewable energy source. It should be made mandatory for all the States to sources 10 per cent of their energy requirement from renewable sources. Worldwide it is mandatory for the electrical utilities to invest in this sector. If India is to achieve a GDP growth of over eight per cent, energy would be one of the crucial prerequisites. This may not be possible from conventional sources alone. Thus, there is no way forward minus wind energy.