Suzlon Energy Ltd., the world's fifth-biggest wind-turbine maker, has set aside 5.9 billion rupees ($139 million) to compensate customers for cracked blades.

Suzlon will pay John Deere Wind Energy and Edison Mission Energy for output losses resulting from defective turbine blades, Chief Financial Officer Kirti Vagadia told investors in Singapore today. About 6 percent of its 1,251 V-2 series, 2.1-megawatt blades are cracked, he said.

Ahmedabad, India-based company's shares have fallen 46 percent this year because of concerns that blade defects may prompt customers to cancel orders. Last month, a unit of Southern California power company Edison International declined to take delivery of 150 turbines after it complained of receiving faulty equipment, Suzlon said.

"Making provisions for retrofitting and for possible claims from clients about loss of production was the right thing to do,'' said Krishnakant Thakur, Mumbai-based analyst with Edelweiss Capital Ltd., who recommends investors buy Suzlon shares. ``They've... [continue via Web link]