MUMBAI: In a bid to cut growing debt levels, India’s wind energy giant Suzlon is going to sell its German arm Senvion for 1 billion euros ($1.17 billion).
The firm was once a star of India’s green technology industry, but has suffered mounting losses as the global economic crisis hit sales of its wind turbines.
In a statement to the Bombay Stock Exchange, Suzlon said it hoped to close the sale of Senvion to the US private equity firm Centrebridge Partners by March 31. “The proceeds would be used for debt repayment thereby reducing interest cost and augment business growth,” said the group’s chairman Tulsi Tanti. He said Suzlon hoped to capitalise on the new Indian government’s “thrust on renewable energy”.
Prime Minister Narendra Modi has vowed to cut the country’s reliance on coal and increase its use of renewable energy sources. Suzlong shares rose 0.58 percent to 17.29 rupees in Mumbai on the announcement.
