Insolvent German turbine maker Senvion is to turn its Indian subsidiary into “an independent standalone operational business unit”.

The new arrangement will mean that Senvion India will be able to offer services to customers that previously were overseen from head office in Germany, including “in-country turbine supply agreements, engineering, manufacturing, local R&D support and service provision”.

The measure could potentially be a first step towards selling the Indian unit outright, a potentially lucrative move for the embattled turbine maker as the Indian wind sector continues to boom.

“Senvion India will be furnished with all licences to the extend necessary, R&D know-how and technical support in order to strengthen local capabilities,” said the company in a statement.

The move will “help the company serve local clients in a growing market in the best possible way by improving efficiency and streamlining operations”, Senvion said.

Senvion India will remain a wholly-owned subsidiary of Senvion.

“Simultaneously, we continue to focus on our accelerated M&A process to potentially sell Senvion as a whole,” said Senvion chief executive Yves Rannou.

The company entered "preliminary self-administration proceedings" under German insolvency legislation in April after talks with lenders failed.

It was revealed last week that lenders have given Senvion until at least the end of August to continue ongoing talks with possible buyers of part or all of the company.

Senvion India is based in Mumbai, with a dedicated R&D centre in Bangalore in Karnataka state, and a recently expanded manufacturing in Baramati, Maharashtra state.

“This decision [for greater independence] marks another important milestone for Senvion India, following on from the recent successful installation of the first Senvion 2.3M130. I believe this move will enable us to offer an even higher level of local quality R&D, engineering support and customer service to our clients.”