Suzlon Looks to Sell More Projects
Offloading stake in 130 MW worth of projects likely to fetch the energy company around ₹ 110 crore
Mumbai: Suzlon Energy has divested 49% stake in solar power projects totalling 210 MW and is in advanced talks to sell stake in another 130 MW worth of projects in a deal that the company aims to close before March, said group CFO Kirti Vagadia. The wind turbine maker had divested 49% in six projects totalling 210 MW to raise ₹ 176 crore. Further stake sale could potentially fetch the company another ₹ 110 crore.
Suzlon announced its foray into the solar power sector in January 2016 by bagging orders worth 210 MW from state utilities in Telangana. Subsequently, the company built a portfolio of solar power projects totalling 515 MW. It has already signed power purchase agreements for 340 MW. “We are now negotiating for 130 MW of other projects for which we have already signed power purchase agreements. Hopefully, we would close the deal by March,” Vagadia said.
Suzlon entered the sector with one of its existing subsidiaries and acqui- red five other entities which have no operational assets at face value to execute solar power projects. The company’s average tariff is ₹ 5.36 a unit for these projects.
Tulsi Tanti promotedSuzlon sold 49% in its 50 MW — Prathmesh Solarfarms to Ostro Energy, and similar stakes in Vayudoot Solarfarms and Rudra Solarfarms of 15 MW each to Unisun Energy and AMP Solar, respectively. Canadian Solar has bought 49% stake in Amun Solarfarms and Avighna Solarfarms, both of 15 MW each. Suzlon has also won a175 MW project in Jharkhand and is yet to sign a power purchase agreement for it. CLP India, which lost out to competition in some of the solar bids, managed to grab a share in the solar power space by ac- quiring 49% stake in Suzlon’s 100 MW SE Power. CLP has the option to acquire the balance 51% later. Suzlon Energy, which was burdened by huge debt and accumulating losses, is working towards a turnaround with debt restructuring giving relief on repayments and improved order flows.
“Our priority in the forthcoming quarters is ramping up volume with a strong focus on project execution, maintaining tighter control on net working capital and fixed cost debt and interest, optimising our debt maturity profile and maintaining strong liquidity position for the business,” Vagadia said.
“We want to achieve a growth rate higher than the industry, which is expected to grow at 30% in FY17,” he said.
India aims to have solar power capacity of 100 GW of solar power capacity by 2022. The sector has seen record capacity additions, with tariff bids for new projects falling to unprecedented lows, as the government is pushing hard to achieve the ambitious target.
Suzlon had divested 49% in six projects totalling 210 MW to raise 176 crore