Suzlon Group, govt to meet over Rs 500-cr windfarm | kolkata | Hindustan Times
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Suzlon Group, govt to meet over Rs 500-cr windfarm

kolkata Updated: Jun 06, 2010 14:44 IST
PTI
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Senior staffers of the Suzlon Group will soon meet state officials over a revised agreement on the eastern region's largest windfarm project, expected to come up at Dadanpatra in East Midnapore district.

Sources said that the meeting for finalising the terms of the agreement would be held on June 30.

The 40-50 MW windfarm, to come up on 700 acres of land, would cost around Rs 500 crore.

"A fresh MoU is likely to be signed at a later date," Department of Power special secretary S P Gon Chaudhuri told PTI.

"A major hurdle was sorted out after West Bengal Electricity Regulatory Commission allowed a 10-year power purchase agreement (PPA)," Gon Chaudhuri said, adding that the Government has agreed to buy wind power at Rs 4 per unit.

Suzlon Energy subsidiary Suzlon Infrastructure Services Ltd (SISL) will execute the project.

SISL would build and operate the windfarm, and after the project is stabilised, transfer it to propective investors.

SISL GM (marketing) PM Rao, who is also the project in-charge, had insisted on the West Bengal government making the PPA for 10 years instead of five because it was causing a delay in project implementation.

Bankers were also not keen on funding it because a five-year PPA agreement was not feasible for a project with a break-even point of seven years.

With West Bengal having only a 3-MW windpower plant, the Suzlon project -- its largest -- would help scale up the renewable power target from the present 110 MW to 250 MW by 2012-13.

Though the Suzlon project was expected to come up in 2009-10, the economic slowdown as well as the 10-year PPA issue delayed the process.

Sources said that land has been identified, and is in the process of being transferred.

Stating that solar power is another major area of interest for companies in Bengal, Gon Choudhuri said that 90 MW would be added in the next two years.