MC Exclusive: Suzlon Energy, Inox jump as Govt proposes mandatory manufacturing of wind turbines in India

Foreign players including Chinese firms such as Envision Energy and Sany Group would be required to set manufacturing plants in India.

The Ministry of New and Renewable Energy (MNRE) on April 17 proposed mandatory manufacturing of wind turbines in India by foreign players to boost domestic production. According to the proposal, the key components of the wind turbine including blade, tower, gearbox and generator should be manufactured in India.

The proposal is a big positive for domestic wind turbine manufacturers including Suzlon Energy and Inox Wind as rival Chinese companies would no longer be able to sell in India.

The proposal also includes a clause to mandatorily locate the data centre and/or servers in India. All data pertaining to wind turbines must be stored and maintained within India. Transferring of real time operational data outside India will be prohibited. According to the clause, operational control of wind turbines should also be conducted exclusively from a facility within India. The clause also asks for mandatorily locating the R&D centre in India within six months of the proposal getting implemented.

Foreign players including Chinese firms such as Envision Energy and the Sany Group would be required to set up manufacturing plants in India. Several foreign players are major players in manufacturing wind turbines in India , such as, Vestas, GE Vernova, Envision, Senvion and Siemens Gamesa.

States with large installed wind power capacities include Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Rajasthan. Suzlon Energy has a large manufacturing base in Andhra Pradesh, Gujarat, Maharashtra, Karnataka, Tamil Nadu, Rajasthan. While Inox Wind has manufacturing facilities across Gujarat, Himachal Pradesh and Madhya Pradesh.

The proposal is a part of a new draft notification by MNRE for Revised List of Models & Manufacturers (RLMM) for wind turbine models.

At 12:25 pm, shares of Suzlon Energy are trading higher at 6.74 percent at Rs 58.79 a piece on BSE while Inox Wind shares are up by 4.49 percent at Rs 170 a piece.