Pune-based Suzlon Energy reduced its net loss to Rs 1,075 crore in the quarter ended December 2013 from Rs 1,155 crore a year ago on better project execution. The company's total income in the third quarter rose to Rs 5,052 crore from Rs 4,048 crore a year-ago. The wind maker, which has a debt of over R14, 000 crore on its books, has been successful in getting Rs 9,500 crore of its debt restructured and has also got a relief on the FCCB defaults. In an interview with Subhash Narayan and Kirtika Suneja, Suzlon Group chairman
Tulsi Tanti says efforts to make the company profitable will bear fruit in 2014-15. Excerpts:
How is the energy sector performing globally and where does India stand?
From our experience in 33 countries where we are present, it is clear the situation in India is comparatively dismal. We aren’t improving and correcting things fast enough to salvage the situation. We are not adding sufficient capacities in renewable energy sectors like wind and solar, and even in hydropower sector.
As far as the thermal sector is concerned, costs have gone to a very higher level and the unstable fuel situation and lack of enough global funds have been constraints too. In the power sector, we require structural improvement and long-term solutions related to the policy framework (including for fuel imports), grid infrastructure and financial institution’s support. Of course, efficient execution of projects is crucial.
You had recently said the worst is over for the global wind industry.
Yes. The financial year 2012-2013 had been a very bad year for the wind industry and it experienced a negative growth. Most of the wind companies globally suffered losses. Now, in 2013-14, there has been a (positive) change and the global economy is believed to have grown 3.7-3.9 %. Most economies are stabilising and not seeing uncertainties. The wind-energy market has seen a 25 % growth globally from 38 GW in 2012-13 to an estimated 48 GW in 2013-14. In India, we expect a robust 40% growth this year.
How much is Suzlon’s share in this growth?
There is a minimum 25% growth assured for Suzlon this year. We have seen a 25% growth in the order book to $7.7 billion so far this year and the cumulative order book position is likely to be $8 billion by the end of the year. In last three years, CAGR of