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Indowind Energy Starts Work on 4 MW Solar Plant, Clears Rs 20.85 Crore in Outstanding Loans

Chennai-based renewable energy independent power producer Indowind Energy has initiated the execution of awarded contracts for its 4 MW solar power project, marking the start of on-ground implementation.

Alongside project execution, the company has strengthened its balance sheet by utilising funds raised through a Rights Issue to settle key financial obligations. Indowind Energy has repaid Rs11.63 crore in loans from corporate promoters and approximately Rs9.25 crore toward outstanding dues to the Life Insurance Corporation of India (LIC), aggregating to Rs20.85 crore.

According to the company, the reduction in outstanding borrowings is expected to lower interest expenses and associated finance costs, thereby improving overall profitability and reinforcing its financial stability.

Commenting on the development, Bala Venckat Kutti, Promoter of Indowind Energy, said the company’s immediate priority has been to strengthen its financial foundation while laying the groundwork for future growth. He noted that recent measures are expected to enhance cost efficiency and provide greater operational flexibility as the solar project progresses.

With legacy liabilities largely addressed, Indowind Energy indicated that it is now in a stronger position to explore fresh funding avenues to support expansion. The company added that this improved financial footing will enable it to evaluate new projects aimed at boosting revenues and delivering sustainable long-term performance.