All but gone with the wind: The unfolding sad story of India’s wind sector
If one wishes to see birth of a non-performing asset (NPA), wind power sector in India offers a ring-side view. No where can one see Murphy’s Law being vindicated more strongly than in this sector where everything that can go wrong has gone wrong.
Wind power, which along with solar power was expected to make India a renewable energy powerhouse, is struggling for survival. There are states that do not want to purchase wind power, some do not want to pay for the power purchased while some others want all old contracts to be renegotiated at the lowest tariff rate. While these developments are taking place normally vocal power ministry seems to be missing in action.
A recent report says that payments of over Rs 2,000 crore is still pending from various state distribution utilities (discoms). Since September 2016 discoms in Madhya Pradesh, Maharashtra, Tamil Nadu and Andhra Pradesh, have been struggling to meet their payments.
The delay in payment of power generated to the extent of Rs 2,000 crore affects investments of well over Rs 10,000 crore. This, in turn, acts as a disincentive for investments in the sector both by the entrepreneur as well as risk-averse banks.