South Korea's Doosan Heavy Industry & Construction said Tuesday that has provided 200 billion won ($164 million) in emergency funds to its Indian affiliate that has suffered from a liquidity shortage brought on the novel coronavirus pandemic.
The company said in an official regulatory filing that the money has been sent to Doosan Power System India Private Ltd. that is currently engaged in six thermal power plant construction projects on the subcontinent worth some 4 trillion won.
"The COVID-19 outbreak has caused delays in construction work that has been compounded by the unexpected spike in materials needed for the building of the plants," a Doosan source said. He added that difficulties in securing loans on the financial market have pushed the parent company to take immediate action.
Doosan said that DPSI has some 300 billion won worth of outstanding payments, and is engaged in talks to readjust the price of materials it needs to complete the works.
It said businesses that owe Doosan's Indian affiliate money and put off meeting their obligations have complained of tough challenges caused by the coronavirus.
Doosan heavy said that it has secured the funds by offering collateral to state-run Korea Development Bank and Export-Import Bank of Korea.
The collateral offered includes stocks in the heavy industry company and real estate holdings. (Yonhap)