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REpower Wind wins high court ruling against Indian licensee Essar Group

As Panchabuta had reported a few weeks back, REpower Systems AG – in which Suzlon Energy Limited is the majority shareholder with a holding of over 90 per cent – and Saint-Laurent Énergies inc. (SLE) have concluded a contract for the delivery of 150 wind turbines.

In two phases, REpower will deliver, install and commission 54 MM82 turbines and 96 MM92 turbines. The turbines have a total power of 300 megawatt (MW) and are destined for the Lac Alfred wind farm project in the Canadian province of Québec.

REpower had in 2006 signed a deal with India based Essar Group that has diversified interests from mobile to shipping to steel, to create  Essar REpower to give it a manufacturing foothold in India too. Essar Global Power, part of the large Essar Group,  was to produce Repower’s 1.5 MW and 2 MW wind turbines under licence and sell them in India and other markets in south-east Asia, including Malaysia, Thailand and Vietnam.

According to that deal production was set to begin in 2007 and the deal would continue until 2016. However Suzlon accquired majority shareholding in REpower the following year after the deal was signed in 2007 and since the manufacturing facility that was supposed to have come up in Gujarat never happened.

However, last year Repower terminated the agreement after citing that Essar had not built a factory as required. Essar subsequently took legal action to uphold the agreement and according to reports, REpower has now won the high court ruling in its favour against the Indian licensee Essar Group and is hence free to look out for a new manufacturing partner.

It seems like REpower might now locate the factory in one of the South East Asian (Malaysia/Thailand/Vietnam) countries  and source majority of its components from India and China.

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