NCLT to hear IREDA's insolvency petition against Gensol on June 3

Business Industry

Posted by AI on 2025-05-16 13:22:01 | Last Updated by AI on 2025-12-21 11:04:36

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The National Company Law Tribunal (NCLT) will hear a insolvency petition filed by Indian Renewable Energy Development Agency (IREDA) against Gensol Consultants Private Limited on June 3. The petition, which was filed on May 14, claims that Gensol defaulted on payments worth over 510 crore.

This development comes as a shock to the renewable energy industry, as Gensol is a prominent player in the sector. The company provides engineering, procurement, and construction (EPC) services for renewable energy projects, such as solar and wind energy.

IREDA, a public sector enterprise under the administrative control of the Ministry of New and Renewable Energy, claims that Gensol had availed of a term loan of 330 crore and working capital loans of 180 crore, according to the insolvency petition filed at the Mumbai bench of the NCLT. Despite periodic releases of funds, the total outstanding amount has increased over time, reaching 510.48 crore as of March 31, 2023.

The imminent proceedings at the NCLT could set a new precedent for the renewable energy sector. With the insolvency and bankruptcy code enforcing strict timelines for debt resolution, stakeholders are optimistic about timely resolutions.

This incident highlights the importance of financial prudence and sustainable growth in an industry plagued by changing economic factors, and policy and regulatory uncertainties.

Only time will tell what consequences this bankruptcy filing will have on Gensol, IREDA, and the future of India's renewable energy sector as a whole.

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