Suzlon Energy has scrapped the plans of rights issue. The company termed adverse market conditions as a major cause to scrap the idea. The company would wait until the global financial conditions stabalize. Suzlon Energy is the fifth largest wind turbine maker in the world and it had planned rights issue worth Rs 1,800 crore.

Suzlon Energy also suspended the negotiation process with its major subsidiary REpower Systems. The company holds 66 percent stake in the Germany-based firm, REpower Systems. The company still has sufficient time to buy 90 percent stakes in REpower. Suzlon Energy had signed a deal two years ago, with French energy major Areva and Portugal's real estate group Martifer. Both companies were major shareholders in REpower at the time of its acquisition.

The chairman and managing director of Suzlon, Tulsi Tanti already said in May that the company had arranged sufficient funds for the acquisition of Areva and Martifer.

It is to be noted that Suzlon Energy is facing problems as quality of its V2 blades is not as per global standards and blades bear cracks after a short time. A unit of Southern California's Edison International has already cancelled an order for 150 turbines in June due to poor quality of blades.