Skip to main content

Inox first insolvency case in green energy


The ongoing insolvency heat has caught on in the renewable energy space with Inox Wind being put under the corporate insolvency resolution process. In a rare instance, a Customs agent, Jeena & Company, has dragged Inox to the National Company Law Tribunal (NCLT) over non-payment of dues totalling Rs 57 lakh. At the same time, Inox Wind has laid off close to 400 employees at its manufacturing unit. A former employee said Inox Wind was yet to clear his final settlement, which was pending for over four months. “The company has no cash flow whatsoever. It is not even able to fulfill its current oder," he said.
With the company issuing an advertisement seeking buyers, the insolvency proceedings begin.
In the absence ofabuyer the committee of creditors will formulate a restructuring plan.
The code gives a company 180 days for resolution failing which either the company can get an extension for another 90 days or go in for liquidation.
This comes just two months after Inox Wind sold off its portfolio of 260 MW of operational wind power projects and decided to exit the wind farming business.
The move was meant to help the parent company pare its debt.
Inox Wind kept the wind turbine manufacturing business for itself.
The company recently made headlines by winning a 250 Mw project atahistoric low bid of Rs 2.97 per unit in the maiden wind power project tender.
The project will come up in Tamil Nadu.
The portfolio sale was to JP Morgan Assetbacked Leap Green Energy Pvt Ltd. The projects are spread over Rajasthan, Maharashtra, Madhya Pradesh and Tamil Nadu and are owned and managed by IRL IR Jaisalmer (IRJL). The company did not disclose the transaction amount but by market estimates, the deal size is estimated to be close to Rs 1,300 crore.
Inox Wind executives had then said the deal would help it pare the group company´s debt and help it focus on its core business of wind turbine manufacturing.
Sector experts pointed out that the crisis was the result of aggressive expansion by Inox Wind and regulatory hurdles faced by the industry during the past four years.
The Business Standard, New Delhi, 15th July 2017

Comments

Popular posts from this blog

Shrinking footprints of foreign banks in India

Shrinking footprints of foreign banks in India Foreign banks are increasingly shrinking their presence in India and are also becoming more conservative than private and public sector counterparts. While many of them have sold some of their businesses in India as part of their global strategy, some are trying to keep their core expertise intact. Others are branching out to newer areas to continue business momentum.For example, HSBC and Barclays Bank in India have got out of the retail business, whereas corporate-focused Standard Chartered Bank is now trying to increase its focus on retail “Building a retail franchise is a huge exercise and takes a long time. You cannot afford to lose it,” said Shashank Joshi, Bank of Tokyo-Mitsubishi UFJ’s India head.According to the Reserve Bank of India (RBI) data, foreign banks’ combined loan book shrunk nearly 10 per cent from Rs 3.78 trillion in fiscal 2015-16 to Rs 3.42 trillion last financial year. The banking industry, which includes foreign banks…

RBI rushes in to prop up falling rupee

RBI rushes in to prop up falling rupee India’s central bank reportedly intervened in the currency markets on Monday to prevent a further slide in the local unit, which breached the 67 mark to a dollar for the first time in 15 months amid a widening trade gap and runaway import bills fuelled by high crude-oil prices. Some state-owned banks were seen selling dollars aggressively, interventions that market dealers attributed to the central bank’s strategy to stem the decline of the Indian rupee against the US currency. The rupee is the worst performing among a dozen Asian monetary units in the past three months. It lost 4.25 per cent to the dollar during the period, show data from Bloomberg. On Monday, the Reserve Bank of India (RBI) is said to have sold about Rs 800 million collectively on the spot and exchange traded futures markets, dealers said. An email sent to RBI remained unanswered until the publication of this report. The currency market has seen such a strong central bank interven…

GST Refund of Rs 20,000 Cr Pending: Exporters’ Body

GST Refund of Rs  20,000 Cr Pending: Exporters’ Body Refund of over Rs 20,000 crore on account of Goods and Services Tax (GST) is pending with the government with more than half the amount stuck as input tax credit, Federation of Indian Export Organisations said on Tuesday. While claims over Rs7,000 crore were cleared in March, the amount was Rs 1,000 crore in April.However, after exporters’ request, the GST council and tax department are organizing a second phase of Special Refund Fortnight starting May 31, which will enable exporters to draw their refunds at a speedy pace. Many exporters have been unable to file the refund of input tax credit due to technical glitches, exports and claim happened in different months. The major challenge lies on ITC refund especially because the process is partly electronic and partly manual which is cumbersome and add to the transaction cost, the exporters’ body said. On IGST, refunds are getting delayed due to airline and shipping companies not submitt…