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Budget 2012: Wind Power Cos Banking on FM

  • With Tamil Nadu being the largest producer of wind power in the country, wind energy companies feel the sector can go a long way in easing the state's ongoing power crisis. But a lot depends on what the FM Has in mind for the sector this budget, reports CNBC-TV18's Swathi Narayanan.Wind energy accounts for over 15% of the power generated in Tamil Nadu. With the state having an installed capacity of nearly 6000 mw, while this power could help reduce the state's electricity shortage, lack of infrastructure means.

  • Wind power is not being utilised properly with 1000 mw of power lost last year. On top of this, the cash strapped Tamil Nadu State Electricity Board has not paid wind power players from July 2010. According to industry sources around Rs 500-600 crore of payments are still outstanding.Ramesh Kymal, CMD of Gamesa says, "Last year and the year before that, we saw largest installations in TN. Not this year, people have run away from the state and moved to other states where you are able to get payment promptly."

  • DV Giri, Secretary General of IWTMA says, "We are concerned about the payment issue in Tamil Nadu which is delayed over 10-12 months."The Tamil Nadu Electricity Board, burdened with a Rs 10,000 crore debt, however hopes the payments will be made soon Rajeev Ranjan, Chairman of Tamil Nadu Electricity Board says, "We have some financial problems and we are trying to come up with a financial restructuring plan which we have submitted to Government of India."But till then....faced with infrastructure woes, delayed payments and high interest costs, the wind energy industry wants the finance minister to continue with existing sops.

  • Kymal says, "We are asking for the continuation of the generation based incentive probably a slight increase in that because independent power producers find it remunerative to invest."With Tamil Nadu facing a shortage of around 4000 mw of power annually, wind energy could prove to be a good supplement to the existing sources of power. So, all eyes now on whether the FM extends more relief to the sector this Friday.

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