Wind Powering Gujarat

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Dr Rajesh KhajuriaDirector, TEAM Projects & Consultants, Vadodara (India) and TEAMPro Limited, London (UK)E: [email protected]: www.TeamPro.org India M: 94260 75402

(Thanks to Mr M M Kotwal, Director, GEDA for helping articulate this mission).

Wind Powering Gujarat: A White Paper

This white paper articulates mission, status and potential of Wind Power Generation industry inGujarat compared to India and the World, and suggests strategies for achieving Gujarats

potential over next 5 years 2006-2011.

Fund-raising is one of the key inputs (and constraints) in realising this potential. This paperspecifically addresses fund-raising strategies and TEAMs role in achieving the same.

Gujarat was probably the first State in India to recognise Wind Power potential when it set upfirst Wind Farm on Mandvi sea beach, Kutch in 1986. Dr Rajesh Khajuria was a key teammember to establish techno-economic feasibility of this project in 1983. TEAM recently advisedState Bank of India on funding a Wind Farm project being set up at Navadra, Dist: Jamnagar bya private party Jayant Agro-Organics Ltd, a listed company with 20% Global market share incaster oil and derivatives manufacturing and export to 50 countries from Gujarat.

Mission of Gujarat

To create a profitable and total environment in Gujarat State conducive to creation, operationand maintenance of 4,000 MW Wind Power Generation in 5 years 2006 2011, and attract aninvestment of Rs 17,000 Crore in the State.

Achievement

In last 20 years (1986-2006), Gujarat has seen wind farm industrys growth close to 300 MW byMarch 2006, out of total 2,500 MW set up in India.

Tamilnadu also started Wind Power generation almost at the same time that Gujarat started.However, TN is now far ahead of all States in India. See Annexure II: State wise Year wiseIndias Wind Power Generation.

Wind Power Potential

Two significant developments in the State are expected to create a surge in the demand forwind power generation to 4,000 to 5,000 MW capacities in Gujarat in next 5 years, if conduciveand total environment is created. This will see an investment of Rs 17,000 Crore.

1. Leasing of Government land to private parties (consumer industries) or Developers at

nominal lease rent @ Rs 10,000 per hectare p.a. on any of the 52 wind farm potentialidentified locations anywhere in Gujarat. This has already come into effect.
mailto:[email protected]:[email protected]://www.teampro.org/mailto:[email protected]://www.teampro.org/


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Wind Powering Gujarat

Bank of India and IREDA could take up larger share, while others may like to take smallershares as perAnnexure I: Consortium of Banks Proposed.

Foreign Investment Component

If we focus on attracting Foreign Investment in the Wind Power sector, the proposed fund-raising options could take a new shape as under:

Term Loans from a consortium of 20 Banks and FIs @ 50%: Rs 8,500 CroreForeign Direct Investment or Multilateral Agencies Loans @ 25%: Rs 4,250 CrorePromoters / Investors Investment @ 25%: Rs 4,250 Crore

----------------------TOTAL Rs 17,000 Crore

TEAMPro Limited, London (UK) could work on attracting FDI in Wind Power sector in Gujaratand India.

TEAM

TEAM Projects & Consultants (www.TeamPro.org) was set up by Rajesh Khajuria in 1983,which was soon approved by State Bank of India, IDBI, Central Bank, Canara Bank, DenaBank, SISI Ministry of Industry, CDC Ministry of Science & Technology and various other Banksand Governments to advise on industrial / regional / skill development, techno-economicviability for project funding and performance improvement of all industries in India.

TEAM in India has advised on setting up over 215 projects, generating investment to the tune ofRs 10 billion, that included Wind Power, Hydro Power and Water management projects, apartfrom a number of industries from electrical to engineering, machine building, textile, oil,chemical, pharmaceutical, mineral, electronic, consumer, hotel, hospital, amusement andleisure sectors.

In 2005, TEAMPro Limited was incorporated in London (UK) to advise UK and NRI businessesand Banks on fund-raising and funding viable projects, and offer Strategic Advice to expandfrom local to international markets. TEAMPro recently launched UK2India Program(www.UK2India.org.uk) with British Chambers of Commerce for increasing bilateral trade andinvestment between UK and India.

Consortium to Wind Power Gujarat and India

TEAM proposes to form a consortium of leader stakeholders to advise, fund and implementWind Powering Gujarat, with the ultimate mission of Wind Powering India.

The members ofWind Power Consortium are proposed as under:

TEAM, Vadodara (India) and UK

GEDA, Vadodara

Banks as per Annexure II

IREDA, New Delhi

Technology Suppliers & Collaborators

Developers / Investors

Consumer Industries

MNES, New Delhi (for Wind Powering India)

C-WET, Chennai (for Wind Powering India)

Residential Customers (future)

NGOs promoting Wind Power (future)

Action

Dr Rajesh Khajuria 20.01.2006 Page 4 of 7
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TEAM as independent and Bank approved consultants, shall have the mandate to carry outfollowing assignments:

Preparation of Techno-economic viability (TEV) studies for various sizes of Wind Power(Wind Farm) Projects with great potential in Gujarat.

o These TEV Study Reports shall be submitted to the consortium banks for pre-

approval as viable projects with ready funding / term loan proposals.o Viable projects and entrepreneurs shall have easy access to bank loans /

funding from consortium of Banks as per their respective norms.o TEAM shall act as Consultants to Wind Power industry.

Wind Farm projects shall be implemented by GEDA and C-WET approved technology /machinery suppliers on turnkey basis.

Contact

Interested organisations may contact for joining the Wind Powering Consortium.

Dr Rajesh Khajuria, TEAM

Annexure-I

Consortium of Banks Proposed for Funding Wind Power Projects

State Bank of IndiaIREDA (Indian Renewable Energy Development Agency)Central Bank of IndiaDena Bank

Canara BankUnion BankCorporation BankICICI BankHDFC BankABN Amro BankHSBCCitibankAmerican Express BankStandard Chartered BankOther Banks



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Annexure-II



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StatewiseYearWiseIndiasWindPowerGeneration(Source:C-WET,GovtofIndia,

Chennai)

Sl.No.

State

Upto

March

1992 D

uring

1992

-93

During

1993

-94 D

uring

1994

-95

During

1995

-96

During

1996

-97

During

1997

-98

During

1998

-99

During

1999

-00

During

Apr.200

0

-

Mar.2001

During

Apr.2001

-Mar.2002

During

Apr.200

2

-

Mar.2003

During

Apr.200

3

-

Mar.2004

AsOn

Mar.

31,2004

1

Andhra

Pradesh

0.5

50

0.0

00

0.0

00

5.4

25

38.9

25

9.3

90

1.5

00

6.0

00

6.0

00

3.8

00

0.7

00

0.0

00

6.2

00

98.8

00

2

Gujarat

14.5

15

1.6

30

10.6

25

37.7

45

51.1

58

31.1

37

20.1

00

0.0

00

0.0

00

0.0

00

0.0

00

6.2

00

28.9

00

202.0

00

3

Karnataka

0.5

50

0.0

00

0.0

00

0.0

00

2.0

25

3.2

70

11

.165

2.6

25

14

.590

10

.400

24

.000

55

.700

84

.900

209.2

00

4

Kerala

0.0

00

0.0

00

0.0

00

0.0

00

2.0

25

0.0

00

0.0

00

0.0

00

0.0

00

0.0

00

0.0

00

0.0

00

0.0

00

2.0

00

5

Madhya

Pradesh

0.5

90

0.0

00

0.0

00

0.0

00

6.3

00

2.7

00

2.7

00

6.1

55

4.1

40

0.0

00

0.0

00

0.0

00

0.0

00

22.6

00

6

Mahara-

sthra

1.1

00

0.0

00

0.0

00

1.5

00

0.0

00

2.7

70

0.2

25

23.3

40

50.3

45

110.6

00

209.4

00

2.0

00

6.3

00

407.4

00

7

Rajasthan

0.0

00

0.0

00

0.0

00

0.0

00

0.0

00

0.0

00

0.0

00

0.0

00

2.0

00

5.3

00

8.8

00

44.6

00

117.8

00

178.5

00

8

Tamil

Nadu

22.3

10

11.0

70

50.4

65

190.8

65

281.6

80

119.7

65

31.1

40

17.7

65

45.6

75

41.9

00

44.9

00

132.8

00

371.3

00

1361.60

0

9

West

Bengal

0.0

00

0.0

00

0.0

00

0.0

00

0.0

00

0.0

00

0.0

00

0.0

00

0.0

00

0.5

00

0.6

00

0.0

00

0.0

00

1.1

00

10

Others

1.5

65

0.0

00

0.0

00

0.0

00

0.0

00

0.0

00

0.0

00

0.0

00

0.0

00

0.0

00

0.0

00

0.0

00

0.0

00

0.0

00

Documents

Wind Powering Gujarat