Moser Baer Solar in Financial Distress

Moser Baer Solar

Moser Baer Solar is a leading name in the Indian solar industry. Moser Baer Solar and Moser Baer Photo Voltaic are subsidiaries of Moser Baer India Ltd. The company has an installed solar power generation capacity of 250 MW. However, the company has lately come under pressure with mounting debt. The company owes over INR 1,000 crore to eight lenders in India – all of them being leading state-owned banks.

The Central Bank of India had filed a petition under the Insolvency and Bankruptcy Code to recover its money from Moser Baer solar. Companies with a net worth of INR 80 crore and a turnover of INR 200 crore are eligible for bidding for Moser Baer Solar’s assets. The company’s solar cell capacity stands at 185 MW, modules capacity at 200 MW and thin film modules at 50 MW. Further, the company owns the infrastructure to develop 500 MW. Moser Baer Solar was making good progress until the onslaught of cheap Chinese imports in India.

Also, read Consolidation Comes To The Indian Solar Development Market

Moser Baer Solar made a strong expansion into all parts of solar energy manufacturing such as polysilicon, thin film as well as crystalline silicon panels. Though the company has now become a mere shadow of its former self, it still enjoys a good position in solar EPC services and PV modules in India. The company also has a good presence in international markets and exports to over 38 countries worldwide.

Officials are confident about the bids, given Moser Baer Solar’s quality assets and a growing solar market in India.

We know that the Indian market is flooded with cheap imports from Asian countries. One of the prominent Indian solar companies is going to be bankrupt, due to huge imports of Chinese solar panels and this is the reason why the Indian government intended to impose duties on imported solar panels and equipment. However, the duties were not in favor of promoting solar development in the country right now, with India just reaching one–fifth of its solar target installations by 2022. It is important for the Indian companies to develop technical expertise and manufacture panels and equipment competent with the west. Otherwise, many such companies could fold up in India.