Sembcorp's Legal Battle to Block Siemens Gamesa's India Exit

Sembcorp's India unit has filed a lawsuit to prevent Siemens Gamesa from selling its Indian business before resolving an arbitration over a failed contract. Sembcorp seeks an injunction in Bengaluru court, asserting concerns over Siemens Gamesa's continued operation and alleging default in a wind power project contract, leading to significant financial claims.

Sembcorp’s India division has launched a legal battle, seeking to halt Siemens Gamesa's efforts to sell its India operations before settling an ongoing arbitration. The case, filed in Bengaluru, aims to secure an injunction against the sale of Siemens Gamesa’s Indian assets, amidst allegations of a contract default involving a major wind power project.

According to court documents, notices have been issued to Siemens Gamesa, which is reportedly planning a country exit by divesting its India manufacturing, maintenance, and renewable energy services. Sembcorp contends that these developments prompt serious concerns about Siemens Gamesa's viability as a continuing entity.

Last year, Sembcorp’s subsidiary, Green Infra Wind Energy Limited, terminated a Rs 816 crore contract with Siemens Gamesa over alleged non-performance. Siemens Gamesa has counterclaimed for Rs 1957 crore. The dispute underscores the high stakes involved in the wind power sector, with GIWEL owning extensive wind energy capacities across multiple Indian states.