Jaggi-led Gensol's debt woes much bigger than thought

Subscribe to enjoy similar stories. Mumbai: The debt troubles of Gensol Engineering Ltd, whose loans were downgraded to default by two rating agencies this week, are more pronounced than initially thought. Mint has learnt that Ahmedabad-based solar plant construction company has delayed repayments to one of its largest lenders, the Indian Renewable Energy Development Agency (Ireda), by up to two months.

A spokesperson for state-run Ireda said the delay has been up to 30 days in some accounts, while in others, it's up to 60 days from the due date. That contradicts Gensol’s claims on the severity of the delay. On 4 March, a spokesperson for the company said it would like to clarify that “this was a one-time disruption, resulting in a minor delay in debt repayment, which has since been promptly settled".

The Ireda spokesperson, however, clarified that loans to Gensol have not turned non-performing. “As on date, there is no proposal for restructuring the dues." A Gensol spokesperson said on Thursday, “We have already addressed the concerns related to downgrade and minor payment delays which occurred due to short-term liquidity mismatch and is now improving by way of customer payments." The company denies any involvement in falsification claims and would be setting up a committee to comprehensively review the matter, the spokesperson said. Gensol’s financial crunch surfaced in public on 3 March, when Care Ratings Ltd downgraded its ₹716 crore bank loan to default, citing delays in “servicing of term loan obligations".