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Wind turbine-maker Gamesa to set up new plant in Andhra

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Spanish wind turbine-maker GamesaChennai : Spanish wind turbine-maker Gamesa is expanding its production capacity in India by setting up a new integrated facility in Andhra Pradesh at an outlay of 100 million Euros (around Rs.800 crore), a top official of the company’s Indian subsidiary said on Tuesday.

“We see good potential for wind power in Andhra Pradesh, Telangana and Madhya Pradesh. The new plant would cater to the needs of these markets,” Ramesh Kymal, chairman and managing director at Gamesa Renewable Private Ltd, told reporters here.

He said the plant is coming up in the IFFCO Kissan Special Economic Zone at Nellore in Andhra Pradesh. It will first manufacture blades for 2 MW wind mills and later the nacelles, generators and other component assemblies.

The plant is expected to start commercial production on August 15, this year, Kymal said.

On the choice of location Kymal said 24-hour power supply, ease of doing business, supportive bureaucracy and political leadership, and proximity to markets are the reasons for choosing Andhra Pradesh.

He said there is potential for growth for wind power in states like Andhra Pradesh and Karnataka.

Kymal said that with new-generation machines, power could be generated even in areas where wind speed is relatively low.

He said the company retained its leadership position in India by installing wind turbines with a total capacity of 1,003 MW.

Cumulatively Gamesa has installed 3,000 MW of wind power in India and Sri Lanka (45 MW).

In the last fiscal the company had installed wind mills with a total capacity of 1,003 MW; and the plant load factor (PLF) of each machine is around 30 percent, Kymal said.

Speaking about re-powering or installing new machines in place of low-capacity older machines, he said policies need to be changed so that a new power purchase agreement (PPA) is signed for supply of power at the revised rate.

“In Tamil Nadu alone 3,000 MW to 5,000 MW capacity can be added by re-powering/replacing the old machines,” Kymal said.

According to Kymal, the company’s order book position for wind turbines is 750 MW and for solar power projects it is 150 MW.

Last year a total of around 3,400 MW of wind power was added and in the current fiscal the capacity addition is expected to be between 4,000-4,500 MW, said D.G. Kamath, executive vice-president (sales and marketing).

He said Gamesa will retain its 29 percent market share this year.

On the solar power projects, Kymal said the company does not have land bank but has the approvals to set up projects totalling 10,000 MW.

“We don’t want to bid in the solar power sector. The market will witness a shakeout as the tariff rates are not economical. Already we are seeing exits from the sector by some players. We will get into bidding for solar power projects at an appropriate time,” Kymal said.

Business

Nifty, Bank Nifty gain for 5th straight week

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The NSE Nifty along with the broader market gained for the fifth week in a row and even the Bank Nifty recorded gains for the fifth straight week — surpassing the 30,000-level.

Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services, said the RBI upgraded its GDP target to -7.5 per cent (-9.5 per cent earlier) for the current financial year and kept interest rates steady given the high inflation. The overall accommodative stance of the RBI to support economic growth boosted sentiments. Nifty Auto and Metal also posted best week since June 7.

The Indian equity market touched another new high, led by gains in banking stocks after RBI`s policy outcome. Nifty rallied 125 points (+1.0 per cent) to close at 13,259 while Sensex surged 447 points higher (+1.0 per cent) at 45,080.

The broader market also ended in green with both Nifty Midcap 100 and Nifty Smallcap 100 up +0.4 per cent each. All the sectors closed in green except energy which ended with marginal loss of -0.1 per cent. Banks were the biggest gainers, up 2.1 per cent, following positive commentaries from the RBI. It was followed by FMCG, financials, metals, pharma, realty and infra which were up in the range 1-1.4 per cent.

“On the domestic side, Nifty along with the broader market gained for the fifth week in a row. Even Bank Nifty recorded gains for the fifth straight week – surpassing the 30,000-level, after the RBI upgraded its GDP target to -7.5 per cent (-9.5 per cent earlier) for the current financial year and kept interest rates steady given the high inflation,” Khemka said.

Deepak Jasani, Head – Retail Research, HDFC Securities, said that Indian benchmark equity indices rallied and closed at another record high after the RBI kept rates on hold and did not announce steps to withdraw liquidity in the system. It raised the growth forecasts as well as inflation forecasts. At close, the Nifty was up 124.60 points or 0.95 per cent at 13,258.50. The Nifty rose for the fifth consecutive week, rising 2.23 per cent for the week.

Volumes on the NSE were higher than recent average. Among sectors, banks, metals, infra, realty, pharma and FMCG indices rose the most, while energy index ended in the negative.

“Nifty closed the week up for the fifth consecutive week. While the trigger of RBI policy is out of the way, markets globally now look forward to rising chances of an early US economic stimulus package. Post a good weekly close, we may see some more upside in the early part of next week,” Jasani said.

Vinod Nair, Head of Research at Geojit Financial Services, said that during the week, the markets have been testing new highs each day supported by better-than-expected GDP data, advancements in vaccine and RBI`s decision to keep its rates unchanged and maintain an accommodative stance. The banking and finance sector remained the focal point during the week due to major events like moratorium hearing, MPC meet and RBI`s curb on HDFC Bank.

The market has also witnessed a shift in investor preference to broader markets led by rally in mid and smallcap stocks.

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