Latest news with #PPAs
Yahoo
15-05-2025
- Business
- Yahoo
REC Ltd (BOM:532955) Q4 2025 Earnings Call Highlights: Record Profits Amidst Challenges
Release Date: May 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. REC Ltd (BOM:532955) recorded its highest ever annual profit of 15,713 crores, marking a 12% year-on-year growth. The company's net worth increased by 13% to approximately 78,000 crores. REC Ltd's total income grew by 20%, reaching around 56,000 crores. The net interest margin improved to 3.63%, an increase of 6 basis points from the previous year. The company maintains a strong capital adequacy ratio of 26%, well above the RBI requirement, providing a cushion for future growth. REC Ltd faced prepayments of 34,000 crores, which impacted the potential growth of its loan book. There are ongoing issues with the signing of Power Purchase Agreements (PPAs) in the renewable energy sector, which could affect future project funding. The company has 12 projects under NPA, with some requiring resolution through the National Company Law Tribunal (NCLT). There is concern about the elevated provision coverage ratio for private renewable projects, indicating potential stress in this segment. The declining interest rate environment poses a challenge, as banks may aggressively seek to refinance projects funded by REC Ltd. Warning! GuruFocus has detected 2 Warning Sign with BOM:532955. Q: What is REC Ltd's outlook on disbursement growth for FY 2026, considering the elevated repayment rates? A: REC Ltd expects disbursements to reach around ?210,000 crore during the year, provided market conditions remain favorable. Prepayments are anticipated to continue at a similar rate, with approximately ?100,000 crore generally due annually. The company received prepayments of around ?34,000 crore this year, primarily from the RBPF scheme, which allows for surplus funds to be repaid and re-disbursed. (Respondent: Unidentified_6) Q: Can you provide an update on the renewable energy projects, particularly regarding the signing of PPAs and any stress in the private renewable book? A: REC Ltd only funds projects with signed PPAs, so the lack of PPA signing does not pose a risk to the company. While there are delays in PPA signings, they are expected to be resolved over time. Regarding the private renewable book, there has been an increase in provision coverage due to some rating downgrades, but no new NPAs have occurred. (Respondent: Unidentified_7 and Unidentified_6) Q: What are REC Ltd's strategies to address the potential pressure from declining interest rates and competition from banks? A: REC Ltd plans to incentivize early project completion and offer refinancing options post-COD. The company is also streamlining business processes to enhance ease of doing business. Despite the declining rate environment, REC Ltd's unique sector expertise and competitive rates are expected to retain business. (Respondent: Unidentified_3 and Unidentified_6) Q: How does REC Ltd plan to achieve its target of a net zero NPA by the end of FY 2026? A: REC Ltd aims to resolve the remaining 12 NPA projects by the end of FY 2026. The company has filed IBC cases for six projects and expects significant recoveries from these resolutions. (Respondent: Unidentified_6) Q: What is the expected borrowing for FY 2026, and how will it be divided between domestic and foreign sources? A: REC Ltd plans to borrow ?170,000 crore in FY 2026. The company evaluates funding sources based on cost-effectiveness at the time of requirement, choosing between domestic and foreign options, including ECBs, based on the most favorable rates. (Respondent: Unidentified_6) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
14-05-2025
- Business
- Time of India
Companies may get more time to sign PPAs under mega power policy
New Delhi: The government is considering extending the timeline by 2-3 years for power projects awarded under the Mega Power Policy that are yet to sign power purchase agreements (PPAs) or have signed partial pacts with distribution companies, people close to the development said. The proposed extension will give power plants more time to sign PPAs and get their bank guarantees, which stand at around ?4,000 crore, released, one of the persons said. The move is likely to benefit at least six power plants with a total planned capacity of around 8 GW, but the capacity remaining to be tied up is around 4 GW, because PPAs have either not been signed or partially signed, according to the person. The deadline for the signing of the PPAs for some projects ends in the current and next year, depending on the project and the date of import of equipment. The plants include those of DB Power 's Baradhara unit, Adani Power 's Raikheda unit, and RKM Powergen 's Uchpinde unit in Chhattisgarh, and IL&FS Tamil Nadu Power 's Cuddalore unit, according to the person quoted above. DB Power and RKM Power could not be reached for comments, while Adani Power and IL&FS Tamil Nadu Power did not respond to an e-mail sent by ET till press time. "States did not issue enough bids due to which PPAs were not signed," the person quoted above said. Another industry official said that with power demand improving, states are showing a willingness to sign long-term power purchase agreements compared with the pre-Covid period. This also resonates with the government's plan to bring more capacity on board to meet rising demand. Extensions to the timeline for PPA signing and furnishing documents to avail benefits under the policy have been provided earlier as well for all projects. The last extension was in 2022 for three years after an extension in 2017 for five years. The 2009 mega power policy promised exemption of customs duty on equipment and excise duty benefits to 25 power projects of 30,000 MW capacity that signed long-term power purchase deals. However, limited power procurement tenders from states led to a few extensions of the deadline to give developers more time for compliance. Of the 25 plants, many have already signed PPAs and hence the extension does not apply to them, the person quoted above said. The mega status was provided to thermal plants of over 1000 MW and hydro plants of 700 MW. These plants, however, had to fulfill some provisions including long-term PPAs of 85% of power produced. Apart from fiscal concessions like zero custom duty for import of capital equipment for the power projects, the policy also envisaged benefits to the domestic bidders and income-tax benefits.
Time of India
13-05-2025
- Business
- Time of India
Companies may get more time to sign PPAs under mega power policy
NEW DELHI: The government is considering extending the timeline by 2-3 years for power projects awarded under the Mega Power Policy that are yet to sign power purchase agreements (PPAs) or have signed partial pacts with distribution companies, people close to the development said. The proposed extension will give power plants more time to sign PPAs and get their bank guarantees, which stand at around ?4,000 crore, released, one of the persons said. The move is likely to benefit at least six power plants with a total planned capacity of around 8 GW, but the capacity remaining to be tied up is around 4 GW, because PPAs have either not been signed or partially signed, according to the person. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 9 years ago - Most beautiful twins. Their appearance today will shock you Novelodge Undo The deadline for the signing of the PPAs for some projects ends in the current and next year, depending on the project and the date of import of equipment. The plants include those of DB Power 's Baradhara unit, Adani Power 's Raikheda unit, and RKM Powergen 's Uchpinde unit in Chhattisgarh, and IL&FS Tamil Nadu Power's Cuddalore unit, according to the person quoted above. Live Events DB Power and RKM Power could not be reached for comments, while Adani Power and IL&FS Tamil Nadu Power did not respond to an e-mail sent by ET till press time. "States did not issue enough bids due to which PPAs were not signed," the person quoted above said. Another industry official said that with power demand improving, states are showing a willingness to sign long-term power purchase agreements compared with the pre-Covid period. This also resonates with the government's plan to bring more capacity on board to meet rising demand. Extensions to the timeline for PPA signing and furnishing documents to avail benefits under the policy have been provided earlier as well for all projects. The last extension was in 2022 for three years after an extension in 2017 for five years. The 2009 mega power policy promised exemption of customs duty on equipment and excise duty benefits to 25 power projects of 30,000 MW capacity that signed long-term power purchase deals. However, limited power procurement tenders from states led to a few extensions of the deadline to give developers more time for compliance. Of the 25 plants, many have already signed PPAs and hence the extension does not apply to them, the person quoted above said. The mega status was provided to thermal plants of over 1000 MW and hydro plants of 700 MW. These plants, however, had to fulfill some provisions including long-term PPAs of 85% of power produced. Apart from fiscal concessions like zero custom duty for import of capital equipment for the power projects, the policy also envisaged benefits to the domestic bidders and income-tax benefits.
The Print
12-05-2025
- Business
- The Print
ReNew Power to invest Rs 22,000 cr in renewable projects in Andhra Pradesh
The company will also set up a 100-kilometre extra-high voltage (EVH) line for transmission of the clean power. ReNew will set up a 1,800 megawatt solar energy plant and another 1,000 MW wind facility along with a battery energy storage system (BESS) of 2 gigawatt hour (GWh) in two phases at Anantapur in Andhra Pradesh, sources with direct knowledge of the matter said. Vijayawada, May 12 (PTI) ReNew Power, a leading green energy company, is set to invest Rs 22,000 crore in establishing India's largest renewable energy complex in Andhra Pradesh, marking its return to the state after five years. Groundbreaking for the project is planned for May 16, which is likely to be attended by Nara Lokesh, Minister for Information Technology, Electronics, Communications, and Human Resources Development in the Andhra Pradesh government. In the first phase, ReNew will set up 587 MW of solar plant and a 250.8 MW wind project alongside a 415 MWh BESS, they said, adding that the remaining capacity would be developed in the subsequent phases. An email sent to the company for comments remained unanswered. This would be the largest renewable energy complex in India. The Andhra Pradesh government approved the projects under the new integrated clean energy policy launched in October 2024. The investments mark the re-entry of the renewable energy major in Andhra Pradesh after a five-year lull. The Y S Jagan Mohan Reddy government in the state had in 2019 ordered a review of all electricity tariffs agreements signed with green companies. The renegotiation of the power purchase agreements (PPAs) put at risk about 5.2 GW of solar and wind power projects in the state. The move hurt 14 major renewable energy companies, including ACME Solar, ReNew Power, Greenko Holding, Axis Wind farms, Azure Power and Mytrah. The firms dragged the state government to court, and the result was a lull in investments. Sources said no renewable capacity in the state was added from 2019 to 2024. After coming to power, the government led by N Chandrababu Naidu has made renewed efforts to bring investments and companies to the state. The re-entry of ReNew, whose 777 MW project was impacted by the PPA review by the previous government, into Andhra Pradesh is being seen as a vote of confidence in the government led by N Chandrababu Naidu. PTI ANZ ANZ SHW This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Time of India
12-05-2025
- Business
- Time of India
ReNew Power to invest Rs 22,000 crore in renewable projects in Andhra Pradesh
ReNew Power, a leading green energy company, is set to invest Rs 22,000 crore in establishing India's largest renewable energy complex in Andhra Pradesh, marking its return to the state after five years. ReNew will set up a 1,800 megawatt solar energy plant and another 1,000 MW wind facility along with a battery energy storage system (BESS) of 2 gigawatt hour (GWh) in two phases at Anantapur in Andhra Pradesh, sources with direct knowledge of the matter said. #Operation Sindoor The damage done at Pak bases as India strikes to avenge Pahalgam Why Pakistan pleaded to end hostilities Kashmir's Pahalgam sparks Karachi's nightmare The company will also set up a 100-kilometre extra-high voltage (EVH) line for transmission of the clean power. Groundbreaking for the project is planned for May 16, which is likely to be attended by Nara Lokesh, Minister for Information Technology, Electronics, Communications, and Human Resources Development in the Andhra Pradesh government. In the first phase, ReNew will set up 587 MW of solar plant and a 250.8 MW wind project alongside a 415 MWh BESS, they said, adding that the remaining capacity would be developed in the subsequent phases. An email sent to the company for comments remained unanswered. Live Events This would be the largest renewable energy complex in India. The Andhra Pradesh government approved the projects under the new integrated clean energy policy launched in October 2024. The investments mark the re-entry of the renewable energy major in Andhra Pradesh after a five-year lull. The Y S Jagan Mohan Reddy government in the state had in 2019 ordered a review of all electricity tariffs agreements signed with green companies. The renegotiation of the power purchase agreements (PPAs) put at risk about 5.2 GW of solar and wind power projects in the state. The move hurt 14 major renewable energy companies, including ACME Solar, ReNew Power, Greenko Holding, Axis Wind farms, Azure Power and Mytrah. The firms dragged the state government to court, and the result was a lull in investments. Sources said no renewable capacity in the state was added from 2019 to 2024. After coming to power, the government led by N Chandrababu Naidu has made renewed efforts to bring investments and companies to the state. The re-entry of ReNew, whose 777 MW project was impacted by the PPA review by the previous government, into Andhra Pradesh is being seen as a vote of confidence in the government led by N Chandrababu Naidu.
