AP renewable projects: No immediate resolution for cash flow stress likely, says Ind Ra
Solar and wind power projects in Andhra Pradesh are unlikely to secure any immediate respite from cash flow-related pressure because of the recent order given by Andhra Pradesh (AP) high court, according to rating agency India Ratings.
The order to pay an interim tariff of ₹2.44/unit and ₹2.43/unit for solar and wind projects, respectively, will not be sufficient enough to debt service the entire 554MW capacity in Ind-Ra’s state portfolio with AP discoms as direct counterparties.
In the absence of internal liquidity generation for the following six months at least, all these affected projects will have to necessarily lean on sponsor support or any balance liquidity available with the project (reserves, undrawn lines, cash balance etc.)
