Tamil Nadu government offers interest-free loan to promote wind power units

Seeking to attract more private players in wind power generation, the Tamil Nadu state government has said that it would provide interest-free loans for five years to new entrants.

“The government is keen on more private companies producing electricity from wind power… We are ready to provide interest-free loan for five years to those who want to set up the wind power units,” Electricity Minister Natham R Viswanathan told the Assembly.

Replying to a Special Call Attention motion moved by the Left parties, he said that the private companies were already producing electricity in their wind farms which have capacities of 440 KiloWatts (KW) and 230 KW.

Asked whether the government had enough infrastructure to store the power produced, he said, “The government is working on the infrastructure.”

Tamil Nadu accounts for over 42 per cent of the wind power produced in the country.

Source: Press Trust of India

Natgrp: Current outstandings on wind invoices are now 14 months and above (we have independently validated this from 2 wind developers with farms in TN), which makes the state a risky proposition. While this offer may sound good, cash flows will be severely impacted if not taken into account.

About Ritesh Pothan

Ritesh Pothan, is an accomplished speaker and visionary in the Solar Energy space in India. Ritesh is from an Engineering Background with a Master’s Degree in Technology and had spent more than a decade as the Infrastructure Head for a public limited company with the last 9 years dedicated to Solar and Renewable Energy. He also runs the 2 largest India focused renewable energy groups on LinkedIn - Solar - India and Renewables - India
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