Gamesa wins $2 billion turbine order from Caparo

In the single-largest order in the Indian wind power sector, independent power producer Caparo Energy India (CEIL) has signed a $2 billion (Rs9,032 crore) deal with the Indian arm of Spain’s Gamesa Corporacion Tecnologica to buy turbines for 2,000 mw.

CEIL is a wholly owned subsidiary of Angad Paul-promoted Caparo Energy, which is listed on London’s Alternative Investment Market (AIM).

Gamesa is among the world’s largest wind turbine makers.
The deal between the two companies for the supply, erection and commissioning of 850 kw and 2 mw turbines will be spread over the next five years. Delivery of the first set of turbines, for 150 mw, will start next year.

CEIL in January placed a $1.28 billion order for turbines for 1,000 mw with Suzlon Energy, India’s biggest turbine manufacturer. The order is Suzlon’s largest to date.

Caparo has targeted a wind power capacity of 5,000 mw by 2017.
Its first projects, in Rajasthan, Gujarat and Maharahstra, will be commissioned next month onwards.

Ramesh Kymal, chairman & managing director, Gamesa Wind Turbines, said at a press conference on Tuesday that while Gamesa will supply and commission the turbines, CEIL will seek the requisite clearances. “That’s the model followed in developed countries,” he said.

Gamesa, which started its Indian operations about two years back, is doubling its capacity in India to 1,000 mw by September.

“We want to do 500-800 mw of projects every year over the next three years,” Gamesa’s global chairman & chief executive Jorge Calvet told reporters in March.

The company has one nacelle unit near Chennai, where it’s adding another unit.

It is also setting up two facilities near Baroda to make towers and blades for turbines.

Nacelle is the protrusion atop a turbine which contains the gearbox, generator, controller, brake and other key parts.

The company is spending about Rs400 crore on the three new facilities and the research & development centre that’s coming up near Chennai.

Talking of financing the order, Ravi Kailas, vice-chairman & chief executive, Caparo Energy, said the company would look at securing senior debt.

“The advantage with large wind power orders is that they are modular so we can tie up debt in phases,” he said.
Senior debt is a bond or other form of debt that takes precedence over other debt securities sold by the issuer.