Millennium Post

Debt-hit Suzlon to invest Rs 24k cr in Gujarat

Debt-hit Suzlon to invest Rs 24k cr in Gujarat
The company’s rupee debt stands at Rs 8,000 crore and it will be reducing it by 50 per cent by the end of this fiscal, chairman Tulsi Tanti told reporters here. The company also has equal debt in foreign currencies.

“We have large operations and a capital structure. We also have many avenues to generate funds to reduce the debt and we are working out on that,” he said, adding the debt will be zero in the next three years.

The company is under corporate debt restructuring since 2012. Tanti also announced a Rs 24,000-crore investment in Gujarat over the next five years to set up a 3,000-mw wind and solar energy capacity which will be owned by small businesses in dedicated clusters for reducing their energy outgo.

The company will be setting up 2,000 mw of on-land wind capacity, 500-mw of offshore wind capacity and 500 mw of solar capacity, he said, adding that offshore capacity will be 5-10 km off the Kutch coast. Asked about speculation around listing of its German subsidiary Senvion (formerly Re-Power) and if funds will be generated from this avenue to retire debt, Tanti refused to comment, pointing out that the company is publicly listed and has to inform the bourses first.

The company’s foreign currency debt too stands at Rs 8,000 crore at present, he said, adding a bulk of this is the $500-million foreign currency convertible bonds (FCCBs) whose repayment was also rescheduled following a default some years back.

The FCCB holders have been given an option to convert their debt into equity, Tanti said, adding almost $50 million of it has been converted and more investors will follow suit. The Pune-based Suzlon will be creating the energy farms in the Saurashtra and Kutch regions of the state and sell to the small enterprises in units of one wind mill and above, Tanti said. “We are not investing in wind projects, we are only playing the part of a developer...we will be marketing these to SMEs,” he said.
PTI

PTI

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