Canadian Solar buys Suzlon’s 30 MW projects in Telangana

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Suzlon has banked Rs545 million by selling two 15 MW solar projects in Telangana to Chinese-Canadian developer Canadian Solar, with the transaction carried out in two stages.

Firstly, Canadian Solar acquired a 49% stake in Suzlon project subsidiaries Amun Solarfarms and Avighna Solarfarms for a total of Rs264 million.  In the second stage, the developer acquired the remaining 51% of stock in the two companies for Rs281 million.

Both the Amun and Avighna units have reported losses, with their negative net worth standing at Rs27.8 million and Rs30.4 million, respectively, as of March 31.

In September, Suzlon partnered with CLP India for two solar projects – of 50 MW and 20 MW in scale – in Maharashtra. As per the agreement signed between the companies, CLP India acquired a 49% stake in Gale Solarfarms and Tornado Solarfarms, special purpose vehicles set up by Suzlon. CLP India also has the option to acquire the outstanding balance at some stage.

With the latest deal, Suzlon has sold minority stakes in all its solar projects. The company plans to sell the 51% balance in the Maharashtra projects by March.

Suzlon had partnered with Canadian Solar in October 2016 for the Telangana PV projects, with the Ontario-based developer agreeing to acquire 49% of Avighna and Amun to execute the projects and provide PV modules, arrange project financing and contribute technology expertise to ensure commissioning of the projects in the last financial year.

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