Wind majors selling assets to avert indebtedness

Wind power majors of the likes of Suzlon, DLF etc. are now looking for buyers who can buy their wind portfolios which will provide an opportunity for the former to raise capital and abrogate a situation of indebtedness.  Regulatory failure has left operating a wind farm a costly affair. On the other hand, the buyers are usually cash rich companies planning an expansion of  their green portfolios. For these buyers, owning an operating farm poses less risk and higher returns in terms of already established performance.

According to a study by Bloomberg, DLF (a property developer company) agreed to sell 217 MWs of projects for 5.23 billion rupees. Ushdev Power Holdings Limited has plans to boost its wing generation capacity and is in talks with Suzlon Energy Limited to acquire 400 MWs over the next 15 months. A detailed article by Bloomberg, can be assessed by clicking here.

In the past few days there have been various petitions filed by wind bodies like IWPA requesting to reinstate the accelerated depreciation scheme (Click Here). WEGs are looking for an urgent regulatory push from the government to regain the sector’s sheen.