Gamesa Wind Turbines, the Indian subsidiary of global turbine-maker Gamesa Corporacion Tecnologica SA, has signed a $2-billion (about Rs 9,300 crore) agreement with Caparo Energy India for supplying and commissioning 2,000 MW of turbine capacity in India. The deal is said to be the biggest in India and among the largest in the world.

Hyderabad-based Caparo Energy India is a wholly owned subsidiary of AIM-listed Caparo Energy. Caparo is planning wind farms in Tamil Nadu, Karnataka, Andhra Pradesh, Gujarat, Maharashtra and Madhya Pradesh. Its first 100 MW project is expected to be ready in June, another 500 MW by March 2012 and a total of 5,000 MW by 2017. The 2,000 MW from Gamesa would be installed progressively by 2016. Last year, Caparo inked a deal with Suzlon for supply of 1,000 MW.

Gamesa will supply and commission turbines (850 kW and 2 MW) starting with around 150 MW from 2012. The deal is part of Caparo Energy's strategy to secure turbines at preferential pricing. The supply will be from Gamesa's new facilities in India where 2 MW turbines and blades will be manufactured. Gamesa has a unit in Chennai and intends setting up two in Gujarat.

Mr Ramesh Kymal, Chairman and Managing Director, Gamesa in India, said, “This order underlines the acceptance of wind energy as a viable solution among corporates for reducing their carbon footprint and meeting energy needs through sustainable energy sources.” Mr Kymal confirmed receipt of advance payment from Caparo, but declined to specify the amount.

Mr Ravi Kailas, Chief Executive Officer, Caparo Energy India, saidCaparo has the backing of international funds such as BlackRock as also their commitment for future financing. The company could also go in for a follow-on offering. The debt-equity ratio, as widely followed in India, would be 70:30.

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