PTC India Fin cheers up

PTC India Financial Services Limited (PFS) announced today morning that it is expected to realize over dues from Danu Wind Parks as High Court of AP has directed DISCOM to clear dues as per PPA rate.

 Danu Wind Parks has developed two wind power projects i.e., 22.8 MW and 25.3 MW in the Kurnool and Anantpur district, Andhra Pradesh (AP) which were commissioned in the year 2016 and 2018 respectively. PFS had sanctioned term debt of Rs. 117 cr and Rs.169 cr 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.

This rule of the HC 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.

The stock opened 2% higher today at Rs.16.80 and rose over 6% to an intraday high at Rs.17.50. Its 52-week high is at Rs.25.90 and low at Rs.15.55.