Debt-laden Suzlon group, on Wednesday, said it had entered into an agreement with China’s Poly LongMa Energy (Dalian) Ltd. to divest 75 per cent stake in its China based manufacturing subsidiary, Suzlon Energy Tianjin Ltd., for $28 million (about Rs.176 crore). The first tranche of payment of the $28 million had been completed. This was part of the company’s plans to retire mounting debt burden of Rs.14, 600 crore, Suzlon said in a statment. Suzlon said it would continue to own 25 per cent stake in the company and participate in the operations of the company as a joint venture partner.
“Thereafter, Poly LongMa Energy (Dalian) will lead marketing and sales operations in China, with Suzlon acting as technology partner… will manage manufacturing and quality for the venture,” Suzlon said.