Companies

Caparo to set up 5,000 MW of wind energy in India

R. Balaji Chennai | Updated on March 12, 2018

Powering ahead: Wind mills are seen at Aralvoimozhi in Tamil Nadu’s Tirunelveli district. Power-starved State Governments are receptive to wind energy projects, while base tariff for wind energy is rising and conventional power is becoming more expensive.

The current year is a milestone for the wind industry in India with wind energy-based Independent Power Producers having proven viability on their own strengths, according to Mr Ravi Kailas, Vice-Chairman and CEO, Caparo Energy Ltd.

Caparo Energy which plans to set up over 5,000 MW of wind energy generation capacity across the ‘windy States' in India by 2017, is the “first IPP to get non-recourse funding.” Earlier, most projects have depended on a parent company's balance sheet, says Mr Kailas.

States receptive

Power-starved State Governments are receptive to wind energy projects, base tariff for wind energy is rising and conventional power is becoming more expensive. These together drive the growth of wind energy. As fossil fuel prices increase, the cost of power from next 100,000 MW of conventional power plant will be “on par with wind.” The company registered in the Channel Islands is listed on the London AIM, and has tied up for debt with IDFC Bank and equity from the London Market.

“Caparo's shareholders have deep pockets and believe over time wind will be more competitive” in India. Its projects will be spread across Rajasthan, Gujarat, Maharashtra and Tamil Nadu.

Caparo has contracted equipment for the first 3,000 MW of machines with Suzlon, and will later finalise plans for the balance with other manufacturers. By March 2012, it will have a generation capacity of 500 MW in place and 500 MW more a year later. This involved investment of over Rs 5,200 crore and is being set up by Suzlon on a turnkey basis.

While the wind energy policy environment is encouraging, the change should be expedited. IPP's requirements are different from that of the typical investor in captive generation capacity who had contributed to the growth of wind energy. IPPs need open access, which Maharashtra has permitted. Over 70 per cent of the power in the State is ‘contestable' at least for deals of more than 1 MW. Other States too should emulate this, he added.

Published on April 09, 2011

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

null
This article is closed for comments.
Please Email the Editor