Suzlon to set up Rs 1500 cr wind farm in Karnataka

Suzlon Energy has decided to set up a 1500 mw wind farm project near Udupi in Karnataka.

The board of director of the company has approved Rs 1500 crore investment for the proposed wind farm and associated integrated facility project of the company which will be ready by 2007.

Talking to media here after company's annual general meeting Tulsi R Tanti, chairman and managing director of Suzlon Energy further said the company will use Rs 400 crore from Rs 1496 crore raised through IPO by the company in last September.

For the balance Rs 1100 crore required for the project would be raised through debt route.

As part of the project the facilities are being planned at strategic locations close to ports for manufacturing of wind turbines with an aggregate capacity of 1,500 mw and vertical integration through foundry, forging and machining units.

The company will set up forging unit at Baroda at the cost of Rs 250 crore. The availability of gas in Baroda has prompted us to set up forging unit near Baroda, said Tanti. Along with the forging unit, the company will invest in foundry unit near Koimbtore. Suzlon has planned Rs 500 crore investment for the Koimbtore unit as part of integrating project. Tanti said the major chunk of the investment - Rs 750 crore would go in for the development of proposed project near Udupi.

Talking about company's proposed project in Gujarat with a capacity of 1500 mw, Tanti said the project would go on stream by 2008. The Gujarat project is taking shape in Kutch district where Gujarat NRE group is setting up some wind mills as part of the project.

Tanti said more investment in the project and further progress is expected in next couple of months when Gujarat state electricity board will fix power purchase rates for wind mill owners. Currently, Karnataka and Maharashtra offer the highest rates to wind mill owners.