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Inox Wind Ltd is undeterred by the ongoing litigation at the National Company Law Tribunal and is confident of executing the projects it has bagged in auctions.
In fact, officials in the government also believe that the company will be able to pull it off as it has deposited the bank guarantee for the 250 MW wind energy project in Gujarat. The company expects financial closure for the project by December 2017 and aims to commission it by September 2018.
Lowest tariffThis project gains relevance as it brought down the tariffs for wind-generated electricity to ₹ 3.46 per unit, the lowest in the country as of now.
In an official statement on July 15, Inox Wind said the company has sought quashing the insolvency proceedings initiated by the NCLT’s Chandigarh bench. The proceedings were initiated on a plea by Jeena & Company, an operational creditor.
Inox said, “In this connection, we would like to clarify that IWL has preferred an appeal before the National Company Law Appellate Tribunal (NCLAT), praying that the said proceedings be quashed… Further, IWL has already settled the dispute with the operational creditor, Jeena & Company.”
The matter has been listed for hearing at the NCLAT on July 24.
Solvency claimInox Wind maintains that the company is a solvent with average revenue for the last three financial years at ₹3,525 crore and a net profit of ₹354 crore. The company’s net worth was at ₹2,190 crore and the company has a cash balance (including liquid investments) of ₹749 crore as on March 31, 2017. But, despite the claims of solvency, the company has admitted that it is facing stress.
In an official statement on May 12, 2017, Executive Director Devansh Jain said, “FY17 was impacted by unforeseen circumstances of states stopping signing of PPAs (power purchase agreements) post-SECI auctions.”
Sectoral stressInox Wind is not alone when it comes to stress in the sector. The discovered price at the SECI auction has become a yardstick for state governments to fix the procurement tariff for wind power.
A government official said, “We do not expect projects to come up on the feed in tariffs model during this fiscal.” Isolated states that wish to adopt this feed in tariffs may at the most give a 15-paise legroom for project developers from the SECI discovered price, an industry watcher added.
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