If Inox Wind does not complete certain tests by June 15, its wind turbines may be blacklisted. There have been a number of compliance issues against Inox’s turbines, according to sources.

At a meeting called by the Central Electricity Authority (CEA) on May 18 to discuss the ‘first time charging’ of newly-set-up wind turbines, the Adani Group was one of those who complained against Inox’s machines.

Inox Wind, a constituent of the InoxGFL group of Gujarat, which is into speciality chemicals, wind turbine manufacturing, and renewable energy generation, makes wind turbines of 2 MW capacity in three variants. (Inox Wind is not to be confused with its subsidiary, Inox Green Energy Services Ltd, a wind power developer which raised ₹740 crore through an IPO in November 2022.)

“A lot of complaints were received against Inox machines over non-compliance,” sources said. 

Need for simulation tests

One person, who attended the meeting, told businessline that energy companies who put up wind farms are expected to do simulation tests — to show how the turbines will behave when in operation — and submit a report.

Only after that would the CEA permit the machines to start operating. Basically, the tests are to show much of the harmonics and reactive power the machines would inject into the grid — this is to make sure that the turbines’ functioning does not disturb the grid.

It is learnt that Inox’s representatives assured the CEA that all the data would be made ready by June 12 — to which the representatives of the Adani Group expressed skepticism saying that it would take at least four weeks for Inox to do all the tests and come up with the reports. 

After hearing the complaints from developers, the CEA ruled that Inox wind turbines testing shall be completed by June 15, failing with “action may be initiated against Inox”. 

Company’s financials

Inox Wind Ltd’s shares of ₹10 each are currently trading on the NSE at ₹149.45. For 2022-23, the company reported a turnover of ₹841 crore compared with ₹608 crore for the previous year; and it reported a net loss of ₹315 crore compared with ₹273 crore previously.)

At a recent discussion with analysts, Devansh Jain, Executive Director, InoxGFL Group, said, “I’m very confident of Inox Wind turning profitable in this financial year.” Jain said that the company is “aiming to do at least 500 MW” this year.

Jain’s confidence stems from the fact that Inox Wind received an infusion of ₹623 crore from the promoters which has been used to pay off debts and reduce finance costs. The company is also gearing up to introduce a 3.3 MW machine. 

Another group company, Inox Wind Energy Limited, “a plain vanilla holding company of the wind business” is being merged with Inox Wind Ltd. A merchant banker has been appointed for this, Jain said.