MUMBAI: Risk of non-payment of dues by power distribution companies (discoms) has resurfaced for wind power projects, with four key states–Madhya Pradesh, Maharashtra, Rajasthan and Andhra Pradesh–that act as a counter-party to around 40% of overall wind capacity in India toting up unpaid dues of Rs5,450 crore to 156 renewable projects as of January. That’s a 50% year-on-year increase in dues, an analysis by credit ratings agency Crisil has shown.
The payment crisis, if it continues, could put nearly Rs30,000 crore of corporate debt at risk of default.
Wind power projects, constituting nearly three-fourth of total private renewable (wind and solar) capacity of these four states, have borne a larger share of payment delays because the majority of these are old projects with tariffs of over ₹4.5 per unit. These tariffs are higher than the average power purchase prices of these states, making discoms unwilling to honour them.
