With banks reluctant to loan, renewable technologies will struggle commercially without state support in grants and tax-reliefs.
Although India’s wind industry has grown annually by an average 22 percent since 1992, new installations have slowed for the first time in 20 years, according to the Indian Wind Turbine Manufacturers Association (IWTMA).
In April to September they were down 39 percent from a year earlier to 851.35 megawatt capacity, the IWTMA said.
Globally, new wind installations are expected to drop by 8.4 percent next year, driven by the US market’s fears of state subsidies ending there, HSBC analyst Charanjit Singh wrote in a note to clients in June.
Suzlon has embarked on a cost-cutting drive to reduce operational expenses and manpower by 20 percent by the end of this year, but the firm declined to talk about the debt default and other concerns despite requests from reporters.
“Our business fundamentals as a group remain strong ... with a record orderbook valued in excess of US$7.2 billion,” an e-mailed statement from the firm said.