Suzlon to set up innovation centre in Denmark

MUMBAI: The wind energy major, Suzlon Energy Limited (SEL) will be fund its Rs 1,500 crore capacity expansion from the present 1,500 MW to 4,200 MW, scheduled to be completed by next June, entirely through internal accruals and debt, in addition to the $90 million already invested in its China and the US facilities.

SEL will also be setting up an innovation centre in Denmark, which will focus on concepts beyond design and development-related R&D such as materials technology, logistics costs and management areas and technology innovations for its turbines.

"We have Rs 500 crore left over from our IPO and the remaining Rs 1,000 crore will be raised through debt. There is no plan to tap equity for the next one year," SEL's Chairman and Managing Director Tulsi R Tanti told the agency.

"We have obtained our Board's approval to raise up to Rs 5,000 crore through various options such as GDRs, ADRs, FCCBs, etc. but I don't foresee a need for them," he said.

SEL also plans to expand the capacity of its gearbox manufacturing in Belgium from the present 3,300 MW to 4,500 MW by end this fiscal, the investment for which will be firmed up soon. Tanti said SEL's two manufacturing facilities in the US and China, at investments of $30 million and $60 million respectively, will be operational by September.

Its proposed 1,500 MW wind energy project at Udipi, close to Mangalore port, will be operational by next June, he said adding that domestic expansions include setting up a forging and machining facility at Baroda and a foundry at Coimbatore in Tamil Nadu.