SEMBCORP FILES SUIT TO BLOCK SIEMENS GAMESA EXIT PLAN

NEW DELHI: Singaporean state-owned energy and urban development company Sembcorp’s Indian arm, Sembcorp India, has moved a Bengaluru court to block German wind power equipment manufacturer Siemens Gamesa from divesting its India operations till an ongoing arbitration over alleged contractual failure by the latter in a major wind power project is settled.

People in the know said the Bengaluru sessions court had on Monday issued notice to Siemens Gamesa on Sembcorp’s petition seeking an injunction against the sale of Siemens Gamesa’s Indian assets and shareholding.

The discord between the two arose when Sembcorp subsidiary, Green Infra Wind Energy Ltd, last year terminated a Rs 816 crore contract with Siemens Gamesa over alleged non-performance. Siemens Gamesa in turn made a counter-claim for Rs 1,957 crore.

Sembcorp petition contends that Siemens Gamesa’s reported move to sell its manufacturing, maintenance, and renewable energy services as part of plans to exit India, raises concerns about that company’s viability as a continuing entity.

Sembcorp India has a pool of operating and under construction power assets totalling more than 3.7 gigawatts capacity across 13 states. Siemens Gamesa is a major supplier of wind turbines and services with local manufacturing base.