Suzlon Energy has found a new suitor, says chairman Tulsi Tanti
NEW DELHI : Suzlon Energy Ltd has found a new suitor even as a rescue plan of Canada’s Brookfield Asset Management Inc. faltered, said Tulsi Tanti, the founder and chairman of the financially-troubled wind turbine maker.
The lenders’ consortium for Suzlon was earlier working on a resolution plan involving the purchase of a majority stake by Toronto-based asset manager Brookfield. Pune-based Suzlon reported a consolidated net term debt of ₹7,761 crore and a working capital debt of ₹3,380 crore as of March 2019.
“We can’t disclose the name as we have signed a confidentiality agreement," Tanti told Mint.
Suzlon’s consortium of lenders initiated work on a resolution plan for the firm and one of the rescue plans could involve Brookfield offering to buy a majority stake in the wind turbine maker, Bloomberg reported on 11 July.
This comes at a time of a crisis in electricity distribution companies (discoms) because of their poor financial health, which has resulted in delayed payment to generation utilities. The discoms owe ₹76,336 crore for the power bought from the generation companies (gencos) at the end of July, according to information available on the union power ministry’s PRAAPTI portal. This comprised ₹56,710 crore as the overdue amount.
Union power minister Raj Kumar Singh is expected to discuss payment security at a two-day conference of state power ministers starting on Friday at Tent City, Narmada, Gujarat.
The payment security issue will deal with “timely payment to generators (solar/wind power) by discoms on first in first out (FIFO) basis" and “opening of LCs (letters of credit) by all discoms/distribution licensees for all independent RE (renewable energy) producers", according to the agenda for discussions reviewed by Mint.
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