India's Suzlon wins $1.28 bn wind power deal
Suzlon Energy, the world's third-biggest wind turbine maker, said on Friday it received a $1.28 billion order from Caparo Energy to develop 1,000 megawatts of wind power projects in India.
The projects will produce 500 megawatts of energy from March 2012 with a further 500 megawatts added by the same month the next year, Suzlon said in a statement.
Suzlon shares rose as much as 2.09 percent to a day's high of 51.25 rupees but fell back to 49.8 on profit-taking at the close -- posting a nearly one percent fall.
Caparo Energy is a Channel Island-registered firm and listed on London's junior Alternative Investment Market. Its shares remained unchanged at 119 pence at 1100 GMT.
The deal was signed with a Caparo Energy subsidiary -- Caparo Energy India -- which already develops wind power projects in India.
"This has been a strong year for wind in the Indian power market," said the founder-chairman of the Suzlon group, Tulsi Tanti.
"With large players like Caparo entering the market, we are seeing independent wind power producers becoming a major force."
Indian billionaire Tanti has capitalised on rising international concern over global warming and climate change widely blamed on the burning of fossil fuels to rapidly expand his firm.
Suzlon projects now generate some 15,000 megawatts of wind energy capacity in 25 countries worldwide.
The group's order book in October last year stood at 3,804 megawatts, valued at about $5.4 billion, according to Dow Jones Newswires.
In 2009, Suzlon sold a 35-percent stake in the Belgian wind gearbox maker Hansen Transmissions International NV, raising 370 million dollars, in a move to cut debt.
India is under pressure to increase its use of renewable sources and reduce its reliance on dirty coal to meet its growing energy needs, as the country's economy expands.
Coal currently accounts for nearly 55 percent of India's total energy production with wind providing 10 percent of power from renewable sources.
© 2011 AFP