Suzlon Energy seeks Rs 4,200-crore bailout from govt-owned PFC, REC

The company had net debt of nearly Rs 6,405 crore as of September last year

Suzlon Energy, a loss-making renewable power firm, has sought a Rs 4,200-crore bailout from the government-owned Power Finance Corporation (PFC) and REC.

According to banking sources, Suzlon Energy has proposed that because REC and PFC have specialised knowledge about the power sector, the two institutions are in a better position to address the specific needs of the company. Besides the ongoing Covid pandemic, which impacted its supply chain, the company has blamed higher goods and service tax for its losses and sought a one-time settlement from its lenders.

According to the proposal made by Suzlon to its lenders, REC will hold up