New additions of 1.7GW in 2017-18 and 1.52GW in 2018-19 are not reflective of the awarded capacity and are also in stark contrast to the record of 5GW+ capacity added before the auctions were introduced.
The main reason for the lack of demand is that many bid winners have still not finalised turbine purchase contracts.
Even where contracts are confirmed, the actual implementation and turbine deliveries have been significantly delayed on account of grid access and land allocation issues.
This slowdown has caused significant pressure in the local turbine manufacturing industry.
An official from the Indian Wind Turbine Manufacturers Association (IWTMA), said the process is being slowed by auctions not requiring a pre-bid contract with OEMs
"This allows project developers to scout for OEMs after winning the bid. There is also a land issue in Gujarat that has delayed the pace of project execution," the official added.
The entrance of new players has further compounded the problem.
Recent turbine awards show foreign players like Senvion, Vestas, and GE have been also able to wrestle supply contracts, shrinking the size of the pie for entrenched players like Suzlon, Inox wind, and Siemens Gamesa.
A silver lining in this scenario is the prospect of exports.
Siemens Gamesa, which has a large manufacturing set-up in India, recently started exporting blades to Americas.
According to Ramesh Kymal, SGRE’s country chief, manufacturing in India can provide significant cost benefits for exports, especially in processes that require large amounts of manual labour.