Suzlon stands to earn another €50m from the binding agreement, subject to several conditions.
The transaction, which is subject to regulatory approvals, is expected to be completed by the end of 2015.
Hamburg -headquartered Senvion develops, manufactures and markets wind turbines with rated outputs of 1.8MW to 6.15MW.
The company, which employs over 3,400 people globally, provides project specific solutions in the areas of service and maintenance, transport and installation, as well as foundation planning and construction.
Senvion will give Suzlon the licence for offshore technologies for the Indian market and in return Suzlon will give Senvion the S111-2.1MW licence for the US market.
Commenting on the transaction, Suzlon Group chairman Tulsi Tanti said: "The proceeds would be used for debt repayment thereby reducing interest cost and augment business growth.
"We will focus on high growth markets like India, USA and other emerging economy markets. The Indian government’s significant thrust on renewable energy offers a conducive policy framework to the sector which Suzlon is best equipped to capitalise.
"Suzlon will offer its wind and solar hybrid technology solutions to contribute towards achieving country’s target of ‘sustainable energy for all."
In October 2014, Suzlon unveiled plans to build 2,000MW of new wind energy projects in the Indian state of Madhya Pradesh over the next five years.
Image: Senvion develops, manufactures and markets wind turbines with rated outputs of 1.8MW to 6.15MW. Photo: Courtesy of pakorn/FreeDigitalPhotos.net.
