News: Ruias step into wind power

(TT 17/09/2006) Mumbai - The Ruias of the Essar group have ventured into renewable sources of energy.

A subsidiary of group holding company Essar Global has joined hands with REpower Systems AG of Germany to design and manufacture wind turbines (1.5 mw and 2 mw capacities) in India. The turbines will be marketed in Southeast Asia.

In the near future, the two corporations plan to set up a joint venture that will allow access to 3 mw and 5 mw turbines and explore future developments.

The licensing agreement was inked on Friday and the plan is to set up the manufacturing plant in a port-based location which the group hopes to finalise soon.

The initial investment is expected to be around Rs 50 crore, which will be financed through internal resources. Essar expects to start commercial production by the middle of next year.

Essar Power director Anshuman Ruia said, “We are happy to be associated with REpower for our foray into the wind energy business. We are confident that this is the beginning of a long and mutually beneficial relationship. The agreement comes at a time when there is a huge demand for power in India and it also fits with our strategy of diversifying into renewable energy sources.”

The wind turbine technology is widely used in Europe and, according to the Essar group, REpower's turbines are ideally suited for Indian conditions.

Essar has been in power generation business for the last one decade. It currently operates four power plants with a capacity of over 1000 mw.

REpower Systems AG is one of the leading manufacturers of onshore and offshore wind turbines. The international engineering company develops, produces and sells wind turbines with outputs ranging from 1.5-5 mw and rotor diameters of 70 to 126 metres. It also provides a comprehensive service and maintenance range.

Listed on the German stock exchange since March 2002 and with around 700 employees worldwide, the Hamburg-based company has installed more than 1,400 wind turbines worldwide.