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Torrent Power facing land, tariff issues in executing 600 MW Gujarat wind projects

FE Bureau
According to him, Torrent has approximately 600 MW wind capacity at different locations. (Representational image)

Gujarat-based Torrent Power (TPL) is facing difficulties in executing nearly 600 MW wind power projects because of problems related to land procurement and issues regarding the power tariff.

Sources close to the development said these issues would impact the company’s planned capital expenditure, which may decline to nearly Rs 2,000 crore from around Rs 5,700 crore during the current calendar year.

When contacted, Torrent group’s executive director Jayesh Desai said currently 615 MW wind projects are under execution and some of them are facing problems such as procurement of land, evacuation arrangement and right of way issues. Desai, however, didn’t divulge details pertaining to expenditure for these projects. According to him, Torrent has approximately 600 MW wind capacity at different locations.

He confirmed that due to similar problems, the company has downsized the wind project in Kutch from 150 MW to 50 MW. Though Desai did not speak about investment, according to sources at the state energy department, it will reduce from nearly Rs 680 crore to over Rs 300 crore.

In 2017, the state government used to purchase wind energy at Rs 4.19 per unit. Now, the tariff has been reduced to Rs 2.80 per unit for the upcoming wind project. Most of the power producers are not comfortable with this rates," said the official, adding that non-availability of affordable land parcel in the state is a major issue.

TPL is part of Rs 21,000-crore Torrent Group which has interests in power generation, transmission, distribution as well as manufacturing and supply of power cables. Apart from wind power plants, the company has a portfolio of coal-based, gas-based and solar power plants with an aggregate generation capacity of over 4,500 MW.

The company has wind power projects in various locations in Jamnagar, Bhavnagar, Kutch and Rajkot districts. Besides, two wind power projects are operational at Lingasugur and Kalaburagi in Karnataka. TPL is also setting up a wind project at Osmanabad in Maharashtra.