Suzlon's Tanti sees 1.2GW in India
Suzlon expects to install more than 1.2GW of capacity in India this financial year, chairman Tulsi Tanti said as he called for government policy to swing behind the wind-power sector.
Tanti told the Hindu Business Line newspaper that reforms are needed to spur development beyond the 2.2GW that India added in 2013.
“In the last two years, only 3.7GW has been added. Therefore, we need to accelerate the development pace by offering right tariffs,” Tanti said.
“The technology is quite matured and cost-competitive. It needs some policy push to accelerate the sector growth.”
The Suzlon boss wants to see measures such as accelerated depreciation reintroduced, along with strict enforcement of the renewable purchase obligation.
Tanti also said the financing model for wind needs to change, pointing to the current net cost of about 10%, including a 2% rebate from the National Clean Energy Fund.
“But it should be about 7% overall. If the cost of funding is low, it’s possible to reduce the tariffs,” he told the newspaper.
The Reserve Bank of India should consider long-term finance of up to 25 years to help attract foreign investors, rather than the current 12 years, Tanti added.