Green Infra Ltd is soon going to acquire the wind power assets of TVS Energy. The total capacity is 59.5 MW.
TVS Energy is a wholly-owned subsidiary of TVS Motor Company and was set up only three years ago. TVS Energy Pvt Ltd was developed with an intention to develop and operate wind and hydro powered power plants. The company was incorporated in 2008 and is based in Chennai, India.
Out of the three companies, Green Infra is tipped to be the frontrunner for the acquisition.
DLF recently had also announced the sale of its 11.2 MW wind turbines in Karnataka for nearly Rs 30 crore.
Many other firms have also currently been selling its wind mills in a move away from the business venture which is no longer lucrative. In the past, a number of companies took to establishing wind farms to take advantage of the government’s pro wind policy and subsidies. The lack of Accelerated Depreciation (AD) benefits and new rules such as forecasting have further tilted the scales in favour of selling of wind farms by firms that do not operate such farms as its core business.
AD allows wind project developer to take advantage of tax benefits. It has been a crucial driver for pushing investment in wind industry in the country.
Wind power is now expected to shift into the hands of companies that have it as their core business and is in the business of producing and selling power.