Wednesday, November 05, 2014
Suzlon expects more orders on accelerated depreciation booster
New Delhi, November 3, 2014: Wind turbine maker Suzlon Energy expects to receive additional orders worth about Rs 3,250 crore this fiscal on the back of government re-instating the accelerated depreciation scheme.
The accelerated depreciation scheme, that would provide relief for wind energy projects, came into force from mid-September.
According to sources, Suzlon expects to receive additional orders to the tune of 500 MW, worth about Rs 3,250 crore, in the current fiscal on account of AD scheme.
On a conservative basis, setting up 1 MW of wind energy generation capacity costs about Rs 6.5 crore.
Accelerated depreciation (AD) refers to calculation that allows for higher deductions towards deprecation in the early life time of an asset.
When contacted, Suzlon Group Head of Finance Kirti Vagadia told PTI, "We expect to receive more orders in third and fourth quarters on account of accelerated depreciation (scheme)".
However, he did not divulge size of expected orders.
The scheme, which had benefited the wind energy sector, was withdrawn by the earlier government in 2012.
"To encourage the wind energy programme, there is an accelerated depreciation. There was a confusion whether we have extended it or not. Members wanted it to be extended. I am, therefore, continuing with that accelerated depreciation," Finance Minister Arun Jaitley had informed the Lok Sabha in July while replying to a debate on the Finance Bill.
At the end of September, Suzlon's order book was worth USD 6.3 billion, with emerging markets alone accounting for about USD 1.1 billion. In terms of capacity, the order book stood at around 4,600 MW.
Suzlon saw its consolidated net loss narrowing to Rs 656.21 crore in the three months ended September from Rs 782.37 crore recorded in the year-ago period.
This figure is after taking into account 'share in minority interest'.
In the second quarter (ended September) of current fiscal, the wind turbine maker's total income climbed to Rs 5,378.89 crore from Rs 4,808.90 crore in the same period a year ago.
Courtesy: Business Standard