Indian PV manufacturer Indosolar has asked to have its debt restructured because it says low equipment prices mean it is unable to make a profit.
In a stock exchange filing last week, the Indian company said one of its plants, a 160MW plant in Greater Noida, Uttar Pradesh, had been idled because the high cost of production against the low prices for PV cells “did not yield margins”.
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“Due to continued liquidity issues the company has approached bankers for a second corporate debt restructuring package,” the New Delhi-based company said, adding that its short-term liabilities exceed short-term assets by 1.9 billion rupees (US$31 million).
This is the second time Indosolar has asked to have its debt restructured; in January 2012 the company was granted approval to restructure around US$31 million of its debt.
Indosolar is one of a number of India-based PV manufacturers pressing for duties to be imposed on PV equipment imported from abroad, claiming competitors from countries such as the US and China are dumping products into India’s market.