PTC India Financial Services Ltd (PFS) is expected to realise overdues from the stressed Danu Wind Parks Pvt Ltd as High Court of Andhra Pradesh has directed discoms to clear dues as per power purchase agreement rate.
Danu Wind Parks Pvt Ltd has developed two wind power projects 22.8 Mw in Kurnool and 25.3 Mw in Anantpur district, Andhra Pradesh which were commissioned in 2016 and 2018 respectively. PFS had sanctioned term debt of Rs 117 crore and Rs 169 crore in the instant loan accounts respectively, an official statement said.
In 2019, the energy department of Andhra Pradesh constituted a High-Level Negotiation Committee to review, negotiate and bring down the wind and solar energy purchase prices. Subsequently, the discom informed developers about reduction in tariff from the rate mentioned in the Power Purchase Agreement (PPAs) executed earlier between developers and discom.
As a result, Danu Wind Parks Pvt Ltd was marked as a Stressed asset in the books of PFS due to non-payment of dues. The matter was sub judice and the high court has pronounced a judgement in this matter on March 15, 2022.
As per the judgement, the high court has directed discom to make payment of all pending and future bills at the rate mentioned in the PPAs and payment of arrears/pending bills is required to be made within a period of six weeks from the date of order.
In line with this order, it is expected that the pending bills/over dues of Danu Wind Parks Pvt Ltd will be cleared at agreed PPA rate. It is also expected to benefit other wind and solar projects in Andhra Pradesh which PFS has funded and regular debt servicing is being done by the borrowers, the statement said.
