The flames of India’s burning private sector debt crisis has reached the solar power market as well, with a large project developer being forced to engage in a stressed sale of assets.
The troubled Indian company Essel Infraprojects is in talks with yet another company to sell its solar power projects to repay outstanding debt.
The Adani Group is the latest company, among almost half a dozen companies which has been reported as the possible buyer of the 310 megawatt operational solar power portfolio of Essel Infraprojects.
Essel has an additional 375 megawatts of capacity under various phases of development.
About an year ago, Greenko Energy Holdings was in advanced discussions to acquire the complete portfolio of 685 megawatts of capacity. However, the deal could not go through.
Private equity group Actis, too, had entered discussion with Essel to acquire the entire portfolio in an estimated deal worth over US$670 million. However, the said deal once again fell through.
Other project developers that reportedly discussed acquisition of Essel’s solar assets include Tata Power Solar and Acme Solar Holdings.
Essel Group has an outstanding debt worth US$1.6 billion.
Various mutual funds have invested more than US$1.15 billion in commercial papers issued by Essel Group. The company has asked these asset management companies for time until the 30th of September to clear all dues, hence the frantic asset sale.
Reference- Economic Times, Business Standard, livemint, Clean technica