Corporate Insolvency Resolution Process Begins At ReGen Powertech

In Clean News, Clean Truth, News, Wind

A tribunal has started insolvency proceedings in the case of Chennai-based wind turbine manufacturer ReGen Powertech, emphasizing the dire times the wind energy sector is passing through.

The National Company Law Tribunal ordered the commencement of a corporate insolvency resolution process of ReGen Powertech on December 9.

ReGen stopped making turbines last year after India switched to auctioning wind energy projects. It took up operations and maintenance (O&M) work, which was inadequate to sustain the company.

In 2017, the wind energy sector transitioned from the feed-in-tariff regime to the auction system. Until February 2017, wind tariffs were set by the power regulators of wind-energy producing states (feed-in tariff), depending on speed and intensity.

In February that year, the Solar Energy Corporation of India, conducted its first sale offer of 1,000 MW, where tariffs tumbled to Rs 3.46 per unit.

The feed-in regime had tariffs of Rs 4-6 per unit across various states.

ReGen closed its unit in Udaipur in late 2017 and cut staff strength at its Nellore plant to 1,300 from 1,700. It stopped manufacturing turbines last year and now specialises only in O&M.

They are cash-strapped.

ReGen is surviving only on O&M, which cannot meet the entire expenses of the company. Wind turbine manufacturers are supposed to predominantly meet their salaries and administrative overheads from their project business.

“This does not come as a surprise… They have not been able to ramp up their order book since 2017.”

Reference- Economic Times, Financial Express, Business Standard

Join Our Newsletter!

Love Clean Future? We love to tell you about our new stuff. Subscribe to newsletter!

Mobile Sliding Menu

Clean Future