BS Reported that Suzlon Energy, one of the top five wind power equipment makers in the world is planning to set aside INR 590 crore for paying damages to its US clients who are facing output losses due to defective blades installed by the company.
Mr Kirti Vagadia CFO of Suzlon during the Nomura Asia Equity Forum in Singapore said that Suzlon will compensate customers John Deere Wind Energy & Edison Mission Energy for output losses because of cracked turbine blades.
He said that "We have made a cumulative provision of INR 590 crore in the balance sheet as of March 31st 2008. We are giving availability compensation to John Deere & Edison under the contractual terms.''
According to recent reports, Suzlon's turbines installed at wind farms of John Deere were not producing enough power due to technical issues such as inability to adapt to the US power grid. Suzlon had supplied over 250 wind turbines to John Deere.
