New Delhi: Suzlon Group has signed a definitive agreement with state-run REC Ltd for working capital facilities.
In a statement on Tuesday, Suzlon said the partnership is aimed at enhancing the company’s capacity to meet its working capital needs, pivotal for executing its extensive current order book and prospective future projects. The renewable energy solutions provider anticipates that these facilities will accelerate its operational activities and optimize the use of its existing capacities.
Suzlon Group boasts an impressive 20.3 gigawatts (GW) of wind energy capacity across 17 countries, and operates 14 manufacturing facilities in India, seeks to expand its reach and efficiency.
The company highlighted that difficulties in securing working capital in recent years have been a significant hurdle in scaling up operations and growing its order book. This new financial arrangement is seen as a significant relief and a reflection of Suzlon’s enhanced financial stability.
REC Ltd, classified as a ‘Maharatna’ company, falls under the administrative purview of the ministry of power. It specializes in providing long-term financial solutions, including loans, to various entities in the country’s infrastructure sector.
Himanshu Mody, chief financial officer of Suzlon Group, expressed his enthusiasm about renewing their partnership with REC Ltd. He highlighted REC’s profound expertise in the power and renewable energy sectors and its role in aiding Suzlon’s past endeavours, including debt refinancing, which helped Suzlon achieve a debt-free status.
“The current facility is non-fund based, which will primarily be off-balance sheet keeping us debt-free while significantly improving commercial terms with our customers and suppliers. This facility is rolling in nature and will allow the company to execute current and future orders from its marquee customers,” Mody added.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!
Download The Mint News App to get Daily Market Updates & Live Business News.
Published: 19 Dec 2023, 03:26 PM IST