Suzlon today announced additional working capital sanctions of Rs 2,300 crore ($344 million) from its lenders over and above the existing limits. The sanction will help the company to capitalize on the growth opportunities in the Indian and global renewable energy sector, the company said in a press statement.
The company has a requirement for execution of sizable order backlog and projects pipeline. The additional infusion of funds, which are over and above the existing working capital facilities of Rs 4,300 crore ($644 million), will enable it to scale up its volumes.
Kirti Vagadia, chief financial officer (CFO), Suzlon Group said, “The additional working capital facilities sanctioned by our bankers will help fuel Suzlon’s business growth and enable us to ramp up volumes rapidly. Our improved credit rating to investment grade helps us in getting timely and cost-effective finance. It will also enable us to capitalize on enormous opportunities in the renewable sector in India. The sanction reiterates the confidence of our lenders in Suzlon’s strategic vision, execution capabilities and the positive environment in the Indian renewable energy sector.”
The Suzlon Group, with a presence in 19 countries in Asia, Australia, Europe, Africa and North and South America, has a cumulative installation of approximately 15GW of wind energy capacity. It has a workforce of over 7,500, a vertically integrated, low-cost manufacturing base, strong in-house R&D set-up in Germany, the Netherlands, Denmark and India. Approximately 9 GW of the group’s installation is in India, making it the largest wind energy generation provider in the country. The Pune-headquartered recently announced its foray into the solar power sector by bagging 210 Mw project in Telangana.
Suzlon won the project through a competitive bidding process called by Southern Power Distribution Company of Telangana Limited (TSSPDCL). The cumulative 210 MW consists of six different capacity projects to be located across the states. This includes one project of 100MW, one of 50MW and four projects of 15MW each.
The company said in a statement that these solar projects would be built under six different Special Purpose Vehicle (SPVs) to be commissioned during 2016-17. One of the SPV is an existing subsidiary of Suzlon, while five have been acquired (by acquiring 100% shareholding).