PTC India might quit wind energy business as tariffs hit a record low
Date: 2018-08-25   Author: Pankaj Singh  Category: #news

PTC India might quit wind energy business as tariffs hit a record low

PTC India Ltd. (PTC), India’s electricity trader, has reportedly made plans to exit the wind energy business in response to the remarkable fall in renewable power tariffs in India. In order to exit the wind power business the firm is on the hunt for interested investors, as claimed by people familiar with the matter.

According to trusted reports, the tariffs of the wind power sector in India have slipped down to a record low. An auction organized by the Gujarat state government’s Urja Vikas Nigam Ltd, the tariffs had plummeted to Rs. 2.43 per kWh (kilowatt-hour).

For the uninitiated, PTC India’s business unit, PTC Energy Ltd, is an energy behemoth producing around 290 megawatts of wind energy that is circulated in the states of Karnataka, Andhra Pradesh, and Madhya Pradesh.

Sources familiar with the matter state that the Indian wind energy sector has experienced many transformations in terms of tariff policies. There has been a transition from feed-in tariff rule, which guarantees the wind power producers with a fixed price, to competitive tariff-based auctions. Thus, to keep revenues flowing in, power companies seek investment at the lowest cost.

According to a news release by the Economic Times, institutional investors who have major stake in PTC India are doubtful about the proper utilization of their funds, and have also questioned the company’s management regarding the same. Furthermore, they have asked the company to stop investing in non-core businesses and to liquidate non-primary operations as soon as possible.

As stated by a company employee requesting anonymity, the drastic change in the tariff regime has aggravated PTC to exit wind energy business by limiting further investments. PTC is seeking investors and plans to transfer complete ownership by selling major stake in the company. The move has already been initiated and the company is now waiting for investor responses.

According to a source familiar with the development, PTC is considering two options – it might either exit the wind power sector or scale up the business.



About Author


Pankaj Singh

Pankaj Singh

Pankaj Singh Develops content for Algosonline, Market Size Forecasters, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

Read More

More from Pankaj


Post Recommendents

Current Health raises $11.5 million in Series A funding round
Author: Pankaj Singh

Current Health, a renowned New York based universal patient management platform, reportedly announced that it has closed a $11.5 million Series A funding round which was co-led by UK based MMC Ventures.


York Tactical Energy Fund and Bayswater team-up to form a new JV
Author: Saipriya Iyer

Bayswater Resources, a renowned Colorado based oil and natural gas firm, and York Tactical Energy Fund, a private investment fund run by York Capital Management investment professionals, have reportedly signed a new ag...


FoodMaven raises $15.3 million from Series B funding round
Author: Saipriya Iyer

U.S.-based food startup, FoodMaven Corp. has a unique business model that offers imperfect and oversupplied food to foodservice providers and restaurants. Recently, the company announced securing $15.3 million from its...