Saturday, April 28, 2007

Essar-REpower Venture Delayed

The proposed Essar-REpower joint venture to produce wind-turbines near Hazira in Gujarat seems to have become a victim of the Suzlon-Areva bidding war to acquire REpower.

Essar and REpower entered into a license agreement last year to build the plant that would make 1.5 to 2 MW wind turbines for the South and South East Asian market. This plant was to be ready in 2007. But according to "a senior official at Essar Power who asked not to be identified. 'We acquired land near Hazira (in the western state of Gujarat) and have also hired people for the venture, but now things have come to a standstill,' he added. He said the company had even hired a managing director for the joint venture."

“Repower, however, claimed there was no delay in the project. 'There is no delay in the second step—to form the joint venture—planned for 2007. First, we wanted to get to know the Indian market better, said Hanna Scherger, team assistant public relations, investor relations and legal affairs for Repower in an emailed response.”