 "Tulsi Tanti")
As the Madhya Pradesh government looks to shift its economy from predominantly agriculture-based to one dominated by manufacturing, Suzlon Energy sees an opportunity to widen its wind energy footprint. In an interview on the sidelines of the Global Investor Summit in Indore, Tulsi Tanti, its chairman and managing director, tells Sanjeeb Mukherjee his next big expansion will be in Madhya Pradesh. Edited excerpts:
The Madhya Pradesh governments has plans for big strides in renewable energy. How does Suzlon Energy fit into this?
In the state, we already have an installed capacity of 200 Mw but with a benign investment climate, we now plan to scale it up to 2,200 Mw in the next five years. Also, we will establish a manufacturing unit in the state, the first outside Gujarat. In our scheme of things, wind power is not only for generating electricity. We also see it as something which leads to rural development, helps in job creation and boosts manufacturing.
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We're looking at Rs 15,000 crore but a part of it will come from foreign players. We're also looking at partnering with small and medium enterprises in the state, wherein they invest in the wind power project and in return, get 20 years of assured power at pre-determined rates. In this manner, their investment is secured and they can also hedge against any future rise in supply rates. We have been operating this model in Gujarat, Maharashtra and Tamil Nadu and will now introduce it in MP. We will also establish a manufacturing base in the state, the first outside Gujarat. All this will be in the next five years.
After this addition, what will be Suzlon's total energy generating capacity?
In total, we plan to increase our wind energy generation capacity by 10,000 Mw in the next five years, of which 2,000 Mw will be in MP. At present, our total installed capacity is 8,500 Mw.
Have you identified and acquired land for the wind power plants and the manufacturing unit?
We are in the process of doing so and will set up the manufacturing unit depending on the place where we can get land for the power plants.
What jobs will be generated in the state once all the power plants and the manufacturing unit become operational?
One Mw generates around 20 direct and indirect jobs and on that count, the 2,000 Mw we plan to add should generate around 40,000 direct and indirect employment. The bulk of this will come during the construction phase.
As more and more state governments are laying emphasis on renewable energy, will that affect the cost of power?
Today, the cost of wind power on a 20-year liberalised rate base is Rs 5-6 a unit, which is also after taking into account the 12 per cent interest on the loan we get from banks. If the interest on the loan is reduced and the financing period is extended, we can further lower our cost of power.
