Latest news with #RLMM
The Hindu
4 days ago
- Business
- The Hindu
Implement revised local sourcing norms for wind turbines immediately: Suzlon Group's Chalasani
As India plans to have 500 GW non-fossil energy capacity by 2030, wind energy is expected to contribute a fifth of that target. Yet, with only 4% of its 1.1 TW (Tera Watt) wind potential tapped, the sector's true challenge lies not in potential, but in execution said J.P. Chalasani, CEO, Suzlon Group, one of India's largest renewable energy companies, in an interview. He said policy reform, cybersecurity, and indigenous R&D were crucial for the success of the wind energy sector in the country. 'Revised List of Models and Manufacturers (RLMM) reforms are a start. Implementation can not wait,' he emphasised. The Ministry of New and Renewable Energy (MNRE) recently revised its RLMM guidelines, mandating local sourcing of critical components like blades, gearboxes, generators, and towers. RLMM guidelines must mandate this not just for new models, but for all existing listings as well, he stated. The revised RLMM guidelines were also to strengthen cybersecurity norms. 'It is a strategic shift—but over a year late. The guidelines must now be implemented swiftly and without dilution,' he pointed out. Stating that India's wind manufacturing ecosystem was more than ready, he said, 'We have over 20 GW turbine manufacturing capacity, but only 20% is utilised. Our blade capacity is 28 GW, including 11 GW from independent manufacturers. Generator capacity is 17 GW—yet underutilised.' The new policy, if enforced, could restore local content levels to 75% by 2026 and 85% by 2028, he stated. Emphasizing the danger of cyber threat to the wind turbines and the grid Mr Chalasani said, 'Wind turbines are not just machines—they are grid-connected, data-exchanging systems. A single breach can ripple into a national grid failure,' he warned. 'Cybersecurity is not compliance—its sovereignty,' he mentioned. He urged mandatory certification of all digital and hardware components—especially those of foreign origin—by Indian agencies such as Central Electricity Authority, MeitY, and Standardization Testing and Quality Certification (STQC) Directorate. 'Embedded malware and hardware trojans are real risks. We need deep protocol-level checks,' he said. MNRE's latest draft also mandates that all turbine operations, data centres, and control systems reside within India—a move which is 'non-negotiable for national security,' he said. Recalling the contribution of late Tulsi Tanti, the founder and MD of Suzlon Energy, Mr Chalasani said, 'He was not just a founder, he was the spirit of Indian renewables. The turnaround we have achieved is our tribute to his vision,' he said. Mr Tanti suddenly passed away in October 2022 raising a question mark on Suzlon's future. Under Mr. Chalasani's leadership, Suzlon has become debt-free and cash-rich, with ₹2,000 crore on its balance sheet. The company's latest 3.15 MW turbine model—engineered for Indian terrain and climate—has been a success. Today, Suzlon has an order book of 5.5 GW, over half of it from industrial and commercial consumers (C&I), and nearly 26% from public sector giants like NTPC and SJVN. 'India Inc. wants reliable green power. Being Indian-designed, Indian-operated, with 25-year service support—that is our edge,' he said. Unlike solar, which he called a 'commodity technology,' Mr. Chalasani, an energy sector veteran said, wind turbines are engineering-intensive and site-specific. 'You can not just import a design meant for Europe and tweak it for Rajasthan,' he said Locally designed and tested turbines reduce downtime, minimise grid disruptions, and enhance long-term operational efficiency, he pointed out. On the government's policy support, he said for too long, Indian OEMs had competed on an uneven field against foreign players importing partially built turbines. 'These new guidelines give us, finally, a level playing field,' he emphasized.
Time of India
14-05-2025
- Business
- Time of India
Rebound ahead: Why Motilal Oswal sees 30% upside in Suzlon Energy
Citing the draft RLMM (Revised List of Models and Manufacturers) notification that requires local content in wind turbines, domestic brokerage firm Motilal Oswal projects 30% upside in Suzlon Energy . The brokerage firm has reiterated its 'buy' rating on the stock with a target price of Rs 75, stating that the stock is currently trading at 24x FY27E PE, which seems attractive after the recent correction. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like If you have a mouse, play this game for 1 minute Navy Quest Undo The stock has corrected from its high of Rs 86.04 to a recent low of Rs 51.10, which marks a decline of 40.6%. 'The recent draft Revised List of Models and Manufacturers of Wind Turbines (RLMM) notification mandating local content in wind turbine manufacturing is a key medium-/long-term positive for Suzlon Energy (SUEL),' Motilal Oswal said in its report. The draft amendment mandates domestic manufacturing of key components—blades, towers, gearboxes, and generators—with a one-year exemption allowing limited imports (lower of up to 50 turbines or 200 MW). Local manufacturing of gearboxes and generators will become compulsory six months after the rules take effect. Live Events The brokerage firm noted that its channel checks indicate that power project developers are expected to request a deferment in the implementation of the draft notification, although there is broad consensus that its formal adoption is highly probable. It is anticipated that the said draft RLMM notification presents two key implications: 1) if regulatory approval is granted, competitive intensity is likely to moderate in the medium term, and 2) Suzlon has the potential to further expand its market share, as Indian OEMs currently account for only 50-60% of new orders, while the company's integrated domestic manufacturing capabilities span all key components. Also read: Did Raymond shares really crash 66%? 4 key things to know about the realty demerger According to Motilal Oswal, other key positives for Suzlon include the rising share of EPC contracts in the order book and easing transmission issues. The brokerage notes that the company is targeting to increase its EPC share from 20% to 50% in the medium term, enhancing visibility and control over deliveries. Additionally, Indian OEMs exploring export opportunities could serve as a medium-term catalyst. The domestic brokerage firm also highlights strong earnings momentum ahead for the renewable energy player, projecting FY26 deliveries of 2.4GW, implying a quarterly run rate of 600MW, which they consider achievable given the 447MW delivered in Q3FY25. The firm estimates Suzlon's revenue and adjusted PAT to grow at a CAGR of 46% and 58%, respectively, over FY25-27. Additionally, key orders planned for FY26 reportedly have substantial land acquisitions completed and possess high power evacuation visibility.
Economic Times
14-05-2025
- Business
- Economic Times
Rebound ahead: Why Motilal Oswal sees 30% upside in Suzlon Energy
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Citing the draft RLMM (Revised List of Models and Manufacturers) notification that requires local content in wind turbines, domestic brokerage firm Motilal Oswal projects 30% upside in Suzlon Energy The brokerage firm has reiterated its 'buy' rating on the stock with a target price of Rs 75, stating that the stock is currently trading at 24x FY27E PE, which seems attractive after the recent stock has corrected from its high of Rs 86.04 to a recent low of Rs 51.10, which marks a decline of 40.6%.'The recent draft Revised List of Models and Manufacturers of Wind Turbines (RLMM) notification mandating local content in wind turbine manufacturing is a key medium-/long-term positive for Suzlon Energy (SUEL),' Motilal Oswal said in its draft amendment mandates domestic manufacturing of key components—blades, towers, gearboxes, and generators—with a one-year exemption allowing limited imports (lower of up to 50 turbines or 200 MW). Local manufacturing of gearboxes and generators will become compulsory six months after the rules take brokerage firm noted that its channel checks indicate that power project developers are expected to request a deferment in the implementation of the draft notification, although there is broad consensus that its formal adoption is highly is anticipated that the said draft RLMM notification presents two key implications: 1) if regulatory approval is granted, competitive intensity is likely to moderate in the medium term, and 2) Suzlon has the potential to further expand its market share, as Indian OEMs currently account for only 50-60% of new orders, while the company's integrated domestic manufacturing capabilities span all key to Motilal Oswal, other key positives for Suzlon include the rising share of EPC contracts in the order book and easing transmission brokerage notes that the company is targeting to increase its EPC share from 20% to 50% in the medium term, enhancing visibility and control over deliveries. Additionally, Indian OEMs exploring export opportunities could serve as a medium-term domestic brokerage firm also highlights strong earnings momentum ahead for the renewable energy player, projecting FY26 deliveries of 2.4GW, implying a quarterly run rate of 600MW, which they consider achievable given the 447MW delivered in firm estimates Suzlon's revenue and adjusted PAT to grow at a CAGR of 46% and 58%, respectively, over FY25-27. Additionally, key orders planned for FY26 reportedly have substantial land acquisitions completed and possess high power evacuation visibility.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Mint
14-05-2025
- Business
- Mint
Multibagger stock: Motilal Oswal sees 30% upside in Suzlon share price after 2,300% rally in five years
Suzlon Energy share price rose by almost 5% during Wednesday's trading session, marking the third consecutive day of gains after brokerage Motilal Oswal reaffirmed its 'Buy' recommendation on the multibagger stock. The brokerage set a target price for Suzlon Energy shares of ₹ 75 apiece, suggesting a potential upside of 30% compared to the stock's closing price on Tuesday. The brokerage noted in its report that the newly-issued draft Revised List of Models and Manufacturers of Wind Turbines (RLMM) requirement for local content in wind turbine production is a significant positive factor for Suzlon Energy in the medium and long term. Based on its investigations, power project developers are expected to ask the government for a postponement of the draft notification's implementation, although there is broad agreement that the notification's official adoption is quite probable. Motilal identifies two main implications from the recent draft RLMM notification. First, if the draft is approved by regulators, it expects a decrease in competitive intensity in the medium term. Second, there is potential for Suzlon to increase its market share further, as Indian OEMs currently represent only about 50-60% of new orders, and the company has integrated domestic manufacturing capabilities for all essential components. Motilal reports that Suzlon aims to increase its proportion of EPC contracts in its total order book from the current 20% to 50% in the medium term, which will be crucial for enhancing visibility and control regarding deliveries. 'Further, Indian OEMs are now exploring export opportunities that may emerge as a medium-term catalyst. While transmission issues have been a bottleneck, recent channel checks suggest some of the delayed sub-stations are now coming up, thus aiding deliveries,' the brokerage said. The brokerage projects a delivery of 2.4GW for FY26, suggesting a quarterly run rate of 600MW, which it considers plausible. The estimates from the brokerage indicate that the company's revenue and adjusted PAT will grow at CAGRs of 46% and 58%, respectively, from FY25 to FY27. Based on the brokerage's insights, significant land acquisitions for key orders planned for FY26 have already been completed, and there is a clear visibility on power evacuation. Suzlon Energy share price today opened at ₹ 57.84 apiece on the BSE, the stock touched an intraday high of ₹ 60.30 per share, and an intraday low of ₹ 57.43 apiece. Shares of Suzlon Energy have surged almost 2,300% in five years, providing multibagger returns for its investors. 'We reiterate our BUY rating on SUEL with a target price of ₹ 75 (based on 32x FY27E EPS). Suzlon Energy is currently trading at 24x FY27E PE, which we believe is attractive after the recent correction,' the brokerage said. Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
Economic Times
22-04-2025
- Business
- Economic Times
Disclosure of wind turbine parts' source may be must
New Delhi: The government has proposed to mandate the listing of details of domestic vendors and source of blades, tower, gearbox and generators if wind turbine makers want their products to be included in the Revised List of Models and Manufacturers (RLMM), in a bid to discourage imports of these components. The Ministry of New and Renewable Energy, in the draft amendments to the RLMM, has said an exemption will be given for a year to those importing these components required for 50 wind turbines or 200 MW, whichever is lower, and to any new wind turbine manufacturer. "Some wind turbine manufacturers import some parts, especially generators and gear box. The government is looking at the components also being made domestically," said an industry executive, who did not wish to be identified.
