Global Wind Power Ltd., backed by billionaire Anil Ambani, sees approval this year to sell a new turbine in India from China Ming Yang Wind Power Group.
Global Wind, a venture between Ambani’s Reliance Capital Ltd. (RCAPT) and Ming Yang, will submit the 1.5-megawatt machine to the Centre for Wind Energy Technology next month with approval seen about a month later, Chief Executive Officer Hiren Shah said in an interview. The center vets turbine models for use in India.
Chinese producers such as Sinovel Wind Group (601558) Co., Dongfang Electric Corp. and Shanghai Electric Group Co. (601727) have won Indian orders to diversify out of an oversupplied home market. Global Wind, which assembles turbines in India from Ming Yang parts, will seek approval for a second 1.5-megawatt machine by May.
The arrangement with Ming Yang may allow Global Wind to tap Chinese lenders for export finance for the construction of wind farms in India, where developers’ borrowing costs can be as high as 15 percent, Shah said in a presentation in Delhi.
Turbines make up 80 percent of building costs. Funding projects with foreign loans, even after currency hedging, may lower borrowing costs to as low as 7 percent, Shah said.
Ming Yang and Ambani’s Reliance Anil Dhirubhai Ambani Group Ltd. announced an agreement last year to develop as much as 2,500 megawatts of wind capacity in India by 2015. In November, China Development Bank Corp. said it may lend as much as $3 billion to the companies after assessing their plans.
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