With the Asian wind energy market set to grow at a fast pace, Finnish wind turbine gears manufacturer Moventas is in the process of establishing a subsidiary in India.
The Indian subsidiary, Moventas India Pvt Ltd, will be set up in Chennai.
“This is as part of the company's strategy to widen its global service centre network. The target is to provide a local contact point and comprehensive gear service to Indian customers,” says Mr Olli Välimäki, Senior Vice-President, Service Division, Moventas.
“Entering new markets in Asia and especially China and India has been a very important element in Moventas strategy,” he said.
“Most of our customers are from southern India. At the moment, we have co-operation with RRB Energy, WinWind, and Pioneer,” he said, adding that “India is a very attractive market for us. It has a huge installed base of wind gears that are getting older year by year. Wind gear service will be in high demand in the coming years.”
On investments, he said, “It is very difficult to say at this point. Similar set-ups to other countries have usually been investments of a few million Euros. We are not looking at setting up a manufacturing base at the moment in India. In phase-1 we will start with service centre.”
The current wind power installed capacity in India is over 13,000 MW. At the current rate of growth, this capacity is expected to be doubled by 2022. The Indian Government is promoting commercial wind power projects through private sector investment in wind potential States by providing fiscal incentives.
Incentives
The incentives include 80 per cent accelerated depreciation, concessional import duty on certain components of wind electric generators, excise duty exemption to the wind energy industry, and 10 year tax holiday on income generated from wind power projects.
Cleantech Finland
Moventas, which also manufactures power transmission solutions for industry use and provides services for their overhaul and maintenance, is a member in the Cleantech Finland programme. Cleantech Finland unites the top Finnish cleantech companies and experts, with products, services, processes and technologies that prevent or reduce the impact of harmful actions on the environment.