IL&FS Solar Power clears all debt
Photo Credit: Reuters

Debt-ridden Infrastructure Leasing and Financial Services (IL&FS) Group’s solar power firm said it has paid its entire debt worth almost Rs 845 crore ($115.5 million).

IL&FS Solar Power Limited, incorporated in 2010, had raised secured and unsecured loans for construction and financing of a 100 megawatt solar power project in Bellary district, Karnataka, for Embassy Energy Private Limited.

The project was commissioned in February 2018.

Embassy Energy, as the owner of the project, prepaid those loan sums, which otherwise would have been payable to IL&FS Solar Power over the next 12 years.

This prepayment has helped IL&FS Solar Power to clear its entire debt.

IL&FS Solar Power will continue to provide certain operational services to Embassy Energy in respect of the project until the IL&FS Group firm achieves final resolution in accordance with the framework approved by the bankruptcy appeals tribunal in March 2020.

For IL&FS Solar Power, the publicly solicited bidding process was launched in November 2018 but no bids were received.

The firm is a 100% subsidiary of IL&FS Energy Development Company Limited. 

In November last year, the debt-ridden IL&FS Group had put the energy advisory business of IL&FS Energy Development on the block.

The IL&FS Group’s overall debt-reduction plan started in October 2018.

Last year, the crisis-hit group had said the aggregate value of debt being addressed is pegged at Rs 56,300 crore – with over Rs 50,000 crore ($6.75 billion) likely to be addressed by March 2021.

In the July-September quarter, the group was able to address debt of just around Rs 1,460 crore (around $200 million) as against an earlier estimate of around Rs 8,800 crore (around $1.2 billion) during the period. The group said the Rs 7,300 crore ($1 billion) shortfall has been rolled over for resolution in subsequent quarters.

Last month, IL&FS sold its 49% stake in Chinese road builder Chongqing Yuhe Expressway Co. Ltd to a fund managed by Ping An Insurance.

In April last year, IL&FS sold its stake in IL&FS Wind Power Services Ltd to Japan’s Orix for Rs 6.06 crore. Earlier this year, the IL&FS board was planning a sale of real estate assets worth Rs 3,500 crore and stakes in Gujarat International Finance Tec-City (Gift City) valued at approximately Rs 1,200 crore.

In November last year, IL&FS got approval from lenders to sell its majority holding in Schoolnet India Ltd (formerly known as IL&FS Education & Technology Service Ltd) to Career Point Publications Pvt. Ltd.

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