January 28, 2011
Suzlon Group signs 1,000 MW business partnership agreement with Caparo Energy India
- Single largest deal by an IPP for wind power investment in India
- 500 MW to be commissioned progressively by March 2012
- Further 500 MW to be commissioned progressively by March 2013
- Deal valued at approximately US$ 1.28 bn
Pune: Suzlon Energy Limited (SEL), the worlds third leading* and Indias largest wind
turbine manufacturer, announced the signing of an order with Caparo Energy (India)
Limited (CEIL) for 1000 MW of wind power projects to be developed in India progressively
by March 2013.
CEIL is a wholly owned subsidiary of AIM listed Caparo Energy Limited (CEL) and is focused
on becoming one of the leading Independent Power Producers (IPP) in India with a thrust on
wind energy.
Angad Paul, Non-Executive Chairman CEL, said: Indias energy market is one of the
worlds most buoyant. With the supportive regulatory framework for wind energy, we see a
great opportunity to invest as an IPP in what is the worlds fifth largest wind energy market.
Recent improvements in the regulatory framework, such as the revised Feed-in Tariffs,
Renewable Purchase Obligation (RPO), Generation-based Initiatives (GBI) and Renewable
Energy Certificates (REC), give us an opportunity for value creation using a combination of
various revenue options. We are happy to have Suzlons expertise, as Asias leading wind
power player, in our endeavor to become a major wind power IPP.
Mr. Ravi Kailas, Chief Executive Officer CEL, said: We are committed to becoming a
major player in the Indian wind power market and, it is key for us that our partner matches
our ambition with capability and expertise. With Suzlon, we believe we have the best lifecycle
value contribution, allowing us to rapidly build up bankable, profitable wind power
projects.
Mr. Tulsi R. Tanti, founder, Chairman and Managing Director Suzlon Group, said:
We welcome Caparo Energy to Indias wind energy market and are pleased to kick off what
I am sure will be a successful long-term partnership. Caparos ambitious plans underscore
the maturity and growing appetite for IPPs in Indias energy matrix and, more important, in
the renewable energy space.
This has been a strong year for wind in the Indian power market. Building on strong,
transparent policy frameworks we now have a mature, attractive market. With large players
like Caparo entering the market, we are also seeing large wind IPPs in India becoming a
major force, in addition to the strong captive and small-size IPP segment. We are also
seeing growing interest of overseas investors to deploy funds through the IPP-route. At
Suzlon, we are leading this growth, and with our strong order pipeline, are confident of
strengthening our market leadership.
Mr. Ashok DSa, President India, South Asia and Middle East Suzlon Energy
Limited, said: This partnership is testament to our customers confidence in Suzlon's
capabilities to execute large-scale wind power projects and our unrivalled experience in the
Indian market. We welcome the opportunity to partner with Caparo Energy.
The projects will utilize various Suzlon turbine models including the S88 and the new S9X
series 2.1 MW turbines with the doubly fed induction generator technology. Suzlon's new
S9X series is specially designed with larger rotor diameters, increased hub heights,
improved aerodynamic efficiency, and grid-friendly characteristics for delivering higher
project performance at widely available low and moderate wind speed sites.
