Sembcorp Sues Siemens Gamesa Over Unsettled Arbitration

27 Jun 2024 CW Team

Sembcorp's Indian subsidiary has initiated legal action in a Bengaluru court to prevent Siemens Gamesa from selling its Indian business until an arbitration concerning an alleged contract default is resolved. In its submission to the Principal City Civil and Sessions Judge in Bengaluru, Sembcorp requested an injunction to halt the sale of Siemens Gamesa's Indian assets, including its shareholding.

The court has issued notices to Siemens Gamesa, according to court documents.

Sembcorp's Indian unit has filed a lawsuit against both Siemens Gamesa and its parent company, Siemens Energy AG. Reports indicate that Siemens Energy AG has decided to sell its entire Indian manufacturing, maintenance, and services business in the renewables sector, effectively signalling a withdrawal from the Indian market.

Due to these significant developments, which raise concerns about the future operations of Siemens Gamesa as a viable entity, Sembcorp sought an injunction to stop the proposed sale. Last year, Sembcorp's Indian arm took Siemens Gamesa to arbitration over a dispute related to a wind power project.

Sembcorp's wholly-owned Indian subsidiary, Green Infra Wind Energy (GIWEL), had entered into a contract with Siemens Gamesa for the supply, erection, and commissioning of a 300-megawatt wind power project, which included 143 wind turbine generators and associated transmission facilities.

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