According to the ratings firm India Ratings and Research, Tamil Nadu Generation and Distribution Corporation Limited (Tangedco) has cleared a significant amount of receivables due to Adani Green Energy (Tamil Nadu) Limited.
Adani Green Energy (Tamil Nadu) Limited comprises various special purpose vehicles (SPVs) such as Kamuthi Solar Power Limited and Ramnad Solar Power Limited among others, which together runs the ultra mega solar power plant of 648 MW at Kamuthi, Tamil Nadu.
The SPVs had signed long-term power purchase agreements for the entire 648 MW capacity with Tangedco at a weighted average tariff of ₹6.02 per unit, India Ratings said. The projects received significant payments from Tangedco during September 2021 to April 2022, reducing the receivables period to around six months from 18 months as of March 2021, it noted. As per a financial presentation given by Adani Green Energy Ltd. as of March 2022, it had receivables due of ₹514 crore from Tangedco.
As on April 30, 2022, the outstanding receivables stood at around ₹333.7 crore, including ₹110 crore under dispute related to grid curtailment during previous years, India Ratings said. While the improvement in the receivables position is a positive development, the low receivables days should be witnessed for a sustained time period to take comfort, it noted.
The ratings firm also revised its outlook on Adani Green Energy (Tamil Nadu)’s Bank Facilities to Stable from Negative.
As per the information available on PRAAPTI (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators) portal, the Tamil Nadu power utility had outstanding dues of ₹2,814.31 crore to renewable energy generators as of June 2022, excluding disputed amounts.
According to Crisil, Maharashtra, Rajasthan, Madhya Pradesh, Telangana and Tamil Nadu had receivable dues to renewable energy generators, with receivables of 8-14 months over the past three fiscals.
It also said Union Power Ministry’s recent scheme to liquidate overdues that distribution companies owed to generation companies, could help release the past receivables, of the renewable energy sector, of ₹9,000 crore over the next two fiscals.
This could improve the receivables period of leading renewable energy generators by 40-50 days from the current 180 days, Crisil noted.
