Suzlon for 3000MW deal worth Rs 13500 crore with Caparo

Suzlon Energy is in advanced talks with Lord Swraj Paul’s Caparo Group to set up 3,000 mw capacity wind farms over a period of six years, a deal that could bring in around $3 billion ( Rs.13500 crore)to the world’s third-largest wind turbine manufacturing company. The power plants will be developed for Caparo Energy, the London-based group’s JV with Finland’s Wartsila, and most of them are likely to be executed in India, said a senior Suzlon executive requesting anonymity. Each mega watt of wind power set up by Suzlon for Caparo Energy could fetch the company over $1 million in revenue, he said, adding that the two companies are likely to finalise the agreement this month. Suzlon makes windmills with the capacity to generate different quantities of power which are fitted with company-designed wind turbines. The product types include 2.1 mw, 1.5 mw and 1.25 mw and each of them are suited for different wind speed. The executive said that the projects will use a combination of the three different product types.

According to the discussions between the two sides Suzlon Energy will also help Caparo identify wind farm sites in India and may also help in land acquisition efforts. Caparo Energy India was set up in March this year with Wartsila, which specialises in manufacturing diesel and gas engines used for powering ships as well as for electricity generation. The Helsinki-headquartered Wartsila had revenues of 5.6 billion for 2009. The Caparo Group website says the company is a e 1 billion diversified business conglomerate.
http://economictimes.indiatimes.com/news/news-by-industry/energy/power/Suzlon-in-talks-with-Caparo-for-power-deal/articleshow/5900381.cms
India-focused wind power generation investor Caparo Energy has joined AIM today after a £50.2m fund raising. The net proceeds of the placing at 115p a share were £46.3m. The cash will be spent on purchasing existing projects from Suzlon Energy and to provide working capital. The acquisition of further generating capacity will be funded by a combination of equity and debt. Caparo has already secured outline terms of a $101.9m lending facility from IDFC. Suzlon has granted Caparo first refusal over its projects between 50MW and 100MW in size. Suzlon will deliver up to 3,000MW of projects. In return, Suzlon will receive advances totalling up to $167.9m from Caparo Energy, payable in four instalments over a period of three years. The strategy is to acquire and develop 5,000MW of generating capacity by 2017. Caparo hopes to have taken on 3,000MW of Suzlon projects by 2016 and the rest by the following year. Indian generation capacity of 163GW is not sufficient to maintain the present level of growth and there are already blackouts. The Indian government is targeting a capacity of 342GW by 2017. Favourable tariffs, incentives and Renewable Energy Certificates, mean that the market is skewed towards wind farms. By 2030, 15% of power needs are expected to come from wind. India needs a slightly different technology to Europe because the wind speed tends to be lower. Caparo ended the first day’s trading at 115.25p a share, which values the company at £188.59m. Caparo says that it will consider paying a dividend when it has developed at least 500MW of capacity.
http://www.digitallook.com/news/3744964/Caparo_raises_50_2m_in_AIM_float.html?&username=&ac=
http://www.cityam.com/news-and-analysis/caparo-energy-raises-%C2%A3502m-fund-wind-farms-first-day-aim-dealings