Companies delivering faulty products to the Indian wind business will find no mercy in the courts. The High Court of Madras recently ruled that a Memorandum of Understanding between wind turbine manufacturer NEPC Micon and Siemens was no longer valid because Siemens was unable to fulfil its warranty on generators supplied to NEPC. The controversy started with a petition filed by Siemens against NEPC Micon for non payment. An out-of-court-settlement was agreed between the two companies, but problems continued. "Despite Siemens' commitment, their generators started failing again. We then stopped payment and went to court," says NEPC director Raj Kumar. He is scornful of a threat by Siemens to drive NEPC into bankruptcy over the issue. "What are they worried about? It is us who have lost out. We have already paid INR 100 million of the INR 110 million." NEPC is now identifying a new supplier of generators and has also started manufacture of its own model.
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