Su­zlon Looks to Sell More Projects

Of­fload­ing stake in 130 MW worth of projects likely to fetch the en­ergy com­pany around ₹ 110 crore

The Economic Times - - Companies: Pursuit Of Profit - Ra­chita.Prasad@ times­group.com

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

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