Suzlon Energy secures 106MW contract from Mitsui and Co.

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Mumbai,  Nov 28 2013: Wind turbine maker Suzlon Energy Ltd, on Thursday, said its subsidiary REpower Systems SE had announced the conclusion of an engineering, procurement and construction (EPC) contract with Mitsui and Co. (Australia) Ltd. to deliver 52 wind turbines with a total rated output of 106.6 megawatts (MW) for the Bald Hills windfarm in Victoria, Australia.

The contract is combined with a service contract for the next 10 years, with a further five year option.

“It is the first contract for REpower with Mitsui and Co, and marks the largest EPC contract, commonly referred to as a full-turnkey contract, for REpower in Australia to date,” Suzlon Energy said in a statement.

As a rule of thumb, a wind turbine costs Rs.6 crore per MW which would make this contract worth over Rs.600 crore.

The turbines are to be delivered in the second quarter of 2014 and to be commissioned in the second quarter of 2015.

“They are expected to produce upto 380,000 MWh of electricity per year, enough to power over 62,000 homes,” the statement added.

In late January, the Suzlon Group won approval for a Rs.9,500-crore debt restructuring plan from its domestic lenders. The lenders, a consortium of 19 banks, also agreed to enhance working capital facilities to the group by Rs.1,800 crore and a 10-year deferred repayment plan.

Courtesy: Live Mint