Ushdev Gets First Payout of 70 Million Rupees Owed by Tamil Nadu

Ushdev International Ltd. (UTF), a wind- farm owner and India’s third-largest non-state metal trader, received part of the 70 million rupees ($1.6 million) it’s owed by Tamil Nadu for power sold since last year.

State-run utility Tamil Nadu Generation & Distribution Corp. paid 15 million rupees to Ushdev Power Holdings Pvt. on July 1 for wind power supplied in September 2010, Arvind Prasad, managing director of Ushdev’s wind power unit, said by telephone today from Mumbai. Ushdev supplies 14 megawatts to the state utility.

Indian state utilities are struggling to pay for the power they buy because of financial problems. Tamil Nadu state, home to 40 percent of the nation’s installed wind capacity, owes 12 billion rupees to project owners, according to the Indian Wind Power Association.

Ushdev shares were down 1.2 percent at 314 rupees at 10:52 a.m. after rising as much as 15 percent earlier in Mumbai trading. The benchmark Sensitive Index of the Bombay Stock Exchange gained 0.3 percent.

To contact the reporter on this story: Natalie Obiko Pearson in Mumbai at npearson7@bloomberg.net.

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net.

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