Suzlon Energy to sell Rs 1,000-cr non-critical assets

Tulsi Tanti, chairman and MD of of Suzlon Energy, said the move was aimed at strengthening the company's balance sheet

After selling Big Sky Wind Farm in the US on Wednesday, Suzlon Energy is planning to sell non-critical assets worth Rs 1,000 crore in a year. Chairman and Managing Director Tulsi Tanti said the move was aimed at strengthening the company’s balance sheet.

“We have lots of non-critical assets. Some of the plants in India are not critical, but real the estate value has grown. About Rs 1,500 crore worth assets are in the pipeline,” Tanti said, on the sidelines of an event organised by the confederation of Indian Industry here.

“Selling the US asset (Big Sky Wind Farm) was part of a Rs 1,500-crore target and the remaining Rs 1,000 crore is yet to be sold,” he added.

Some of the company’s non-critical assets were in Pondicherry and Vadodara, where real estate prices had risen, Tanti said.

Suzlon was forced to sell the 240-Mw Big Sky Wind Farm, located in Illinois (US) and owned by Edison Mission Energy, after it facing a fund crunch. Suzlon had lent $228 million to Edison, which the latter failed to repay. Subsequently, Suzlon acquired the farm asset in lieu of the loan defaulted on by Edison.

Earlier, Suzlon had retrofitted Edison’s turbines, after some turbines had reported breakages. This loss was absorbed by Suzlon in the form of provisions made between 2009 and 2010.