PTC India Financial spurts as Andhra HC directs DISCOM to clear dues

17 Mar 2022 , 10:22 AM

Danu Wind Parks has developed two wind power projects i.e., 22.8 MW and 25.3 MW in the Kurnool and Anantpur district in Andhra Pradesh, which were commissioned in the year 2016 and 2018 respectively.

PFS had sanctioned term debt of Rs 117 crore and Rs 169 crore in the instant loan accounts respectively.

In 2019, Energy Department of Government of Andhra Pradesh had 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 was marked as a Stressed asset in the books of PFS due to non-payment of dues. The matter was sub judice and High Court of AP has pronounced a judgement in this matter on 15 March 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.

PFS is a systemically important non-deposit taking NBFC classified as Infrastructure Finance Company (IFC) by RBI. PFS is structured as a one-stop shop for financing of energy value chain and select sectors of infra projects like power, road, port, logistics etc. with focus on renewable energy and sustainable development.

On a consolidated basis, PFS net profit surged 64.7% to Rs 52.47 crore on 18.7% decline in net sales to Rs 242.33 crore in Q2 FY22 over Q2 FY21.

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