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Caparo plans wind energy parks across 6 states in India

Caparo Energy, a Guernsey company that is the holding company for subsidiaries (together, the “Group”) that seek to generate wind power in India.

The Group intends, in due course, to acquire and develop a portfolio of wind farms with a target total annual installed capacity of up to 5,000 MW, which it intends to develop in two concurrent phases: Phase I consisting of 3,000 MW with a target completion date of 2016; and Phase II consisting of 2,000 MW with a target completion date of 2017.

For Phase I, the Company, through its subsidiary Caparo Energy (India) Limited (“Caparo Energy India”), has entered into a business partnership agreement with Suzlon Energy Limited (“Suzlon”), one of the world’s leading wind turbine generator manufacturers, to acquire up to 3,000 MW of wind power generation farms.

For Phase II, Caparo Energy India is in advanced discussions to acquire land and turbines from international vendors in connection with wind power farm development in wind-rich states in India, including Karnataka, Maharashtra, Tamil Nadu and Andhra Pradesh.

Caparo has been talking about its Phase I of the project from May of last year, and once again in January this year when they  posted their  maiden interim results and announced the details of senior debt facility of Rs 4.5 bn that they had finalized. Again in April this year, Caparo Energy announced plans to raise $150 million (Rs. 7 billion) through private equity.

According to reports, Speaking to Deccan Herald, Caparo Energy Ltd Vice Chairman and CEO Ravi Kailas said the project to be undertaken between now and 2017, across six wind energy-rich states of Tamil Nadu, Karnataka, Gujarat, Rajasthan, Maharashtra and Andhra Pradesh, will see investment of $5.5 billion (Rs 25,000 crore).

The company has signed two major agreements with Suzlon and Gamesa for the execution of the project.

“We have agreements with Suzlon to deliver 1,000 MW of turnkey assets on firm basis by March 2013 that is currently under execution, and further 2,000 MW with them on framework basis,” he said, adding the deal with Gamesa is a turbine supply agreement for 2,000 MW.

Suzlon will build and deliver complete projects, and Gamesa will supply turbines while Caparo erects the projects themselves, he explained.

Kailas informed that the Suzlon deal began execution in January of this year. “We have 1,000 MW under various stages of execution right now with 500 MW expected to be delivered by March 2012. The remaining 500 MW are to be delivered by March 2013,” he added. With the projects being executed, Caparo would become one of the few larger utility scale IPPs (independent power producers) in the country, Kailas claimed.

Caparo’s business model is  to own, operate, produce and sell electricity to the grid on long term contracts.

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