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IWTMA appeals to Tamil Nadu CM against removal of banking for wind

Tamil Nadu leads the country with a 40% share of the wind energy capacity (7000MW). All the leading global and national wind energy players have made TamilNadu their operating head quarters and have invested over Rs.2500 crores in creating over 8000 MW production capacity with world-class manufacturing, Marketing, O&M and R&D facility.

All this has been possible with a progressive state policy that enabled large power intensive private sector like Cement, Steel and Textiles etc to invest over Rs.35000 crores in green power generation over these 20 plus years. While taxdeferral scheme (Accelerated Depreciation) was a prime driver of growth in the category, the private investors were able to BANK surplus power with TNEB and use it later when they needed the same.

There is no doubt that huge investments from the private sector has made Tamil Nadu the Numero Uno player in the wind energy category; amply supported by their contribution of over 3000 MW of wind energy which helped the state alleviate the power shortage crises in the last two months. Hence IWTMA, the apex body representing all major wind energy players has taken a collective stand to highlight the curt TANGEDCO statement recently blaming the system of power banking that has put them into a financial loss and hence the need to stop the banking facility.

Raising strong objection to this regressive statement from TANGEDCO that the current banking of power system be called off, IWTMA feels that this move will not only stall wind energy capacity additions in the state but will also result in investors looking at other lucrative states to invest in, leading to a flight of capital to more progressive states like Gujarat which is gaining prominence in both wind and solar energy capabilities.  This will adversely affect the current plans to install 5000 – 7000 MW in Tamil Nadu in the next five years for which grid infrastructure is being planned.

IWTMA strongly feels that key policy moves that can impact the industry needs a consultative and collective approach rather than an individualist move to ensure that the future of green energy creation is not affected in the state. Making a strong case on this the apex industry body has called on all stakeholders and partners including the State Government ministry and policy bodies to look at creating positive and progressive policy climate that will encourage the growth of wind energy as a secure, safe and green source of energy generation for the people and the future of Tamil Nadu.

Commenting on this, Mr. D V Giri, Secretary General of IWTMA said, “It is rather sad and ironic that while the private sector have created the bulk of wind energy capacity and the industry is investing in introducing higher capacity and more efficient wind turbines the State power distribution body is indulging in lame blame games which does not abode well for all, especially the consumers who are forced to put up with power outages frequently. We hope the State Government will intervene and help create a policy ambience that benefits all stakeholders”.

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