Suzlon Energy sells two solar farms to ReNew Power

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Renewable energy solution provider Suzlon Energy Ltd said that it has sold two of its solar farms — Shreyas and Aalok — to Ostro Energy Pvt Ltd, a wholly owned subsidiary of ReNew Power Services Ltd.

“The company has received an aggregate consideration of Rs 10.13 crores on the sale of 26% of its existing stake in Shreyas and the balance stake would be transferred on receiving the balance consideration of Rs 9.74 crores which is proposed to be completed in due course”, Suzlon said.

Similarly, Suzlon also received Rs 5.06 crores on the sale of 26% of its existing stake in Aalok. The balance stake would be transferred on receiving the balance consideration of Rs 4.87 crores, the company said.

Post the transfer of the balance stake, Aalok and Shreyas will become wholly owned subsidiaries of Ostro.

Ostro Energy Pvt Ltd is a wholly-owned subsidiary of ReNew Power, India’s largest renewable energy independent power producer (IPP) in terms of total energy generation capacity. Incorporated in 2014 and based in New Delhi, Ostro owns, operates and develops wind power projects.

Headquartered in Pune, Suzlon was once the country’s largest renewable energy player. It was even ranked as the world’s fifth largest wind turbine supplier.

But it started getting into trouble after the financial recession of 2009 and soon dropped out of the global ten rankings of leading energy suppliers, owing to extensive losses and inability to pay debts.

The company works on both models — one purely as a contractor who builds renewable energy farms for other companies, and one as the developer, owner and operator of such farms, which are often leased or sold to other companies later.

Suzlon Energy had a net term debt of Rs 6,800 crore and another Rs 3,400 crore of working capital loans as on end-September 2018.

As of March 31, 2018, the turnover for Shreyas for the financial year was Rs 7.56 crores and its net worth was Rs 9.56 crores.

During the same period, Aalok recorded a turnover of Rs 3.91 crores. Its net worth was estimated at Rs 4.98 crores.

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