According to reports, if India has to achieve its target of increasing new and renewable energy to 15 percent by 2020 under the Prime Minister’s Climate Change Action Plan, then the Finance Minister must provide good thrust to wind energy sector in the Budget, Tulsi Tanti, Chairman, Suzlon Energy told CNBC TV18.
“We are expecting positive news in the Budget which will support the renewables and also some good package for the wind industries,” Tanti said adding that currently the sector is not really moving in a right direction and hence administrative support is extremely important.
Tanti pointed that Indian market almost collapsed in the current financial year due to several domestic and global factors. The Union Budget needs to provide support to industries and markets in general to bring forth much needed revival.
The renewable energy sector has become extremely competitive. Tanti, however believes that positive policy framework in countries like US and China will support the industry going forward in 2014-15.
Suzlon has been suffering due to high indebtness since sometime now. The company was referred to corporate debt restructuring (CDR) after it defaulted on payment of foreign currency convertible bonds (FCCBs) worth USD 221 million. The company’s loans has been restructured to the tune of Rs 9500 crore, giving it two year holiday from interest payments.
Tanti said that good mechanisms and banking system in India is giving support to Suzlon’s corporate debt restructuring and it will also help the company to take care of its FCCB bond holders.