How satisfied are you with the current government's approach to your sector? What are your expectations?
The current Government is keen on increasing investments in the sector and the MNRE is already taking about meeting an ambitious target of harnessing 266 GW of renewable power by 2022. We are a signatory to the Green Energy commitment and are confident of achieving the committed target set over the next seven years
In 2013, the Generation Based Incentive was brought back after a year of uncertainty and in 2014 the Accelerated Depreciation was revived. We believe this will fuel growth in both, IPP and the Traditional/Industrial Segment.
Additionally, the Government has also taken steps to accelerate the Green Corridor project which is a welcome move. However, Power is mainly a state subject and state governments need to take the initiative to simplifying permitting rules and ensuring long term policy stability.
So while commitments and investment are increasing, the Government still needs to address the key issues of long term policy certainty, developing infrastructure such as power lines & roads, and reducing the interest rates. Wind power by itself is competitive compared to imported coal power. All that the industry needs is a stable supportive business environment.
How are things on the exports front?
Currently our India capacity can cater to domestic demands. However, given our strong manufacturing facility, turbine certification standards and technical prowess, we will look at exports in the future. In the past we have exported turbines to Sri Lanka.
How do you view the ‘Make in India' initiative in the context of your industry?
It is the need of the hour! India has a Current Account & Trade Deficit and we cannot continue to import when we have the technology and resources here in India. This initiative will also establish India as an export hub in the coming future.
Gamesa as a company is committed to maximising the local content and local manufacturing. We hope with growing demand the supply chain will be much stronger and it will enable us to not just source more from India but also have control on costs.
END
