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My view on Renewable Energy (RE) is very pragmatic, practical and focused. This just does not
pertain to Wind power but in a holistic way, to our entire business. Kalyani group ventured into wind power because it made good business sense, projects were quickly executable and the policy framework assured consistency for an investor.
Our corporate vision favors an increasing dependence on RE as against an overwhelming reliance on fossil fuels in the past. However from an economic perspective this cannot be at higher cost. Long time back I had accepted the idea of a surcharge on RE power over the standard cost of fossil fuel based power supplied by utility companies. This was implemented in Maharashtra where an additional cess per unit of power is being charged to all industries for using RE.
After having taken the lead, in making large investments in wind power, we are still interested in setting up additional projects not only to meet BFL requirements but also the requirements of other Kalyani group companies. However we are looking for comfort in terms of assured consistency in government policies, turbine performance, good generation sites to put up the turbines, lower project costs, optimal O & M costs, committed performance of the equipment during the life cycle of the project and long term contracts with manufacturers. It is apparent that it would take some more time for all these comfort factors to be fully in place before we can commit additional investments in Wind Power. Meanwhile the group is also considering other RE opportunities that would satisfy both our vision and business perspectives.
B. N. Kalyani
Chairman, Kalyani Group
Excerpt of interview with Mr. A. S. Karanth - CEO BFUL
- How do you see “WIND” as business in India? (Ref: Past, present and future).
The significant change from dependence on subsidy and likely interest for Generation, as a
substitute for the already available costly fossil power, generally supplied by the utility companies
is a welcome change.
The inherent confidence on the manufacturers, being restored off late is also good sign. In the
earlier years the turbines were brought in to the country with less sophistication and it was easy to maintain by any new O & M entrepreneur / agency. But today’s large capacity (KW) sophisticated turbines with newer technologies, built in for optimum generation to suit the vailable winds, can not be easily managed by alternative sources of O & M. Therefore, it is essential for the manufacturers to show the grit to hand hold, the investor at reasonable costs, keeping in view the performance and returns of the project.
The future is still good for the Indian industry with present players operating. The new entrants shall sustain based on the continuous demonstration of what they can give to the investors in terms of not just ROI or the mere success in the project execution but more on what delivery to take place year after year.
- What are the further plans of Kalyani group to contribute in wind energy business? After having taken the lead in large investment our Chairman is still interested to add additional projects not only for BFL but for other group companies also. However he is looking for more comfort in the consistency in Policies, turbine performance, offering good generation sites to put up turbines, lower project and 0 & M costs with committed performance for the life of the project added with a long-term contract.
- Please share your experiences of M/s Kalyani Group in wind business and particularly with
EIL.
Kalyani group’s success for the wind power business starting as early as in 1998, has been comfortable, with good performance of the project, not only in terms of generation but also the upkeep support so far given through a long term contract for 0 & M by EIL. However it is to be noted that the return is not as what was conceived at the time of initial entry. This could be due to few factors, beyond our control. There were changes in them Government policies and also due to Regulatory Commission coming into picture subsequently resulted in the changes in what
the group really could avail against the earlier indicated applicable benefits from the investments
during the tenure added with the project execution’s inadvertent initial flaws in some of the
machines location. The Kalyani Group Management has been very happy going for a good site like Tosheghar and for adding more Enercon turbines. This has been well demonstrated by the no of orders Enercon subsequently got from many other investors in Maharashtra.
- How do you find managing wind business a separate entity in Kalyani Group as CEO ?
This has been quite challenging and interesting. There were many avenues for continuously exploring and making changes in machine Operation & Maintenance, however it was difficult getting some of the design related changes to our site conditions.
A useful interaction with the Enercon staff at site and also with HO, could result in enriching our knowledge and jointly achieve what is today in terms of the mutual satisfaction, empowerment & their awareness to know what a customer is serious to look from his investment perspective. With the introduction of a full time representative from our side, at the site, has helped in data collection and to understand the requirements for continuous improvement.
- Recently your group has been conferred with award for excellence in renewable energy -
your comments please. We are very happy and would like to appreciate the joint efforts put in by BFUL and Enercon, for executing the best Grid connected project (Investors) for the year 2003 from MEDA. In my opinion these awards should have been on the performance than merely on execution of the project.
- Your valuable enrich the satisfaction of the suggestion customers.
Customer awareness: - Customer should feel the developments of each day, and not only by the
generation but also improvements in design thus the value addition brought to the machine.
Explore other area of enhancement in people involvement, empowerment, and attitude building, arranging events and creating a joy for every body, society and environment around. This aura has to be achieved in coming years.
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Enercon India Limited
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We are maintaining a very cordial relationship with Enercon ever since our first project in Wind energy. They have a dynamic, dedicated and professional team to take care of the investors...
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