Avaada says every state has execution challenges, more bullish on Maharashtra

Renewables-focused Avaada Group is "more bullish" on Maharashtra, a top official has said, pointing out that every state will have execution challenges that have to be dealt with.

The group, which runs over 6 GWp of solar and wind assets across India at present, was able to execute a project to build solar power equipment at Butibori near Nagpur in record time, the official said.

".. We are more bullish on Maharashtra because now, single window is (there) in the true sense," Vineet Mittal, the group's chairman, told PTI, pointing out that the facility near Nagpur is testimony to the same.


Maharashtra is among the six states having large quantities of barren land, which offers the land bank for renewable companies, he added.

Nearly a year ago, the name of Avaada was in the news after the gruesome murder of one Santosh Deshmukh in the backward Marathwada region's Beed district, allegedly after a tiff outside a wind power project by local goons.

As per some reports, Deshmukh's alleged murderers are alleged to have sought an extortion sum from the Avaada project.

To a specific question about the Beed incident, Mittal said "execution challenges will come" in any state of India.

"'Basically, someone can stand up and say, 'okay, you don't do project here'. And that will happen across the country. It's not just a Maharashtra, Rajasthan or Karnataka issue," he said.

If a state has strong and reliable law and order, such problems are addressed at the nip, Mittal said, reiterating that the renewable energy sector is full of all these challenges.

Mittal said Avaada has developed its own credit risk matrix, which rates states after assessing land availability, execution risk, ease of doing business, willingness to pay on time and also takes leadership changes aboard, but declined to specify Maharashtra's position in the ranking.

He said every state will have problems which can be attributed to local issues, lack of manpower, etc, but added that an operator has to take a view focusing on ensuring that a project gets commissioned on time, even if it means about 0.50-1 per cent escalation in costs because of certain aspects.

"If you are ethical... concentrate on the work happening within your boundary walls, everything happens," Mittal said.