Moser Baer Solar enters CDR cell
India's solar power ambitions may get a jolt with the first major company in the industry Moser Baer Solar headed to the corporate debt restructuring cell with Rs 739 crore in restructuring.
Moser Baer Solar is a subsidiary of Moser Baer India. Another subsidiary company Moser Baer Photo Voltaic with a debt of Rs 823.63 crore was admitted to CDR in January.
"In April, companies including Moser Baer Solar, Gontermann-Peipers (India) and PCH Retail have approached the corporate debt restructuring cell," said a banker in the know of the development. "These cases will be discussed in the next meeting," he said.
Moser Baer Solar expressed its inability to comment on the development as its chief financial officer was traveling overseas. Firms operating in the solar energy space have been under strain following developments in European markets.
"Solar energy companies are involved in manufacturing of solar panels and are also procuring land and setting up solar energy projects," said Pashupathy Gopalan, MD, Sun Edison India. "In the past one year, these companies have been under strain as the European market, particularly the Italian government, has dialed out and reduced its solar policy. The demand is much lower than supply and prices of solar panels have dipped over 50%," said Gopalan.
The Italian market has slowed in anticipation of the government's decision on a new solar subsidy scheme to be rolled out in June.
In February, banks had cleared debt restructuring for Moser Baer India. Banks had an exposure of Rs 2,000 crore to the company.
India's renewable energy investment potential is estimated to be nearly $2 billion, but experts say investors are seeing demand only for hydropower generation while solar power and wind energy are stuck with taxation and regulatory issues.
Rating agency Crisil in its report said it expects banks to restructure loans worth 2 trillion by March 2013.