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    RattanIndia Power expects to become debt-free in 2 years

    Synopsis

    The company is regularly engaging with lenders of its subsidiary Sinnar Thermal Power Limited for resolution of the project Plant in light of increasing demand of power, the statement said.

    Power---AgenciesAgencies
    RattanIndia Power managing director Vibhav Agarwal said the company would prefer various domestic coal auctions by Coal India Ltd over coal imports.
    RattanIndia Power Ltd (RPL) on Friday said it expects to become debt-free in nearly two years based on revenue from its thermal power plant at Amravati in Maharashtra and accumulated dues from power distribution companies.

    The company is working on debt resolution with the lenders to its 1,350-Mw power project at Nashik in Maharashtra, its chairman Rajiv Rattan told ET.

    The company reported 212% increase in net profit for the third quarter at Rs 104 crore. Its EBITDA for the quarter rose 119% to Rs 299 crore in Q3 FY2021, an official statement said.

    Rattan said the company aims to continue the deleveraging process in coming quarters as its Amravati plant enjoys favourable position in the merit order stack of Maharashtra,

    Since its commissioning in 2015, RPL has been generating annual EBITDA of Rs 1,000 crore. The company has Rs 4,000 crore regulatory assets and receivables from Maharashtra, some of which are at final stages of realisation, expected to accelerate the deleveraging process, he said.

    Pursuant to debt rationalisation in December 2019, RPL has paid back Rs 2,001 crore in last eight quarters (January 2020 – December 2021) including Rs 450 crore as prepayment.

    As on December 31, 2021, the external secured-term debt obligations of the company stand at Rs 1,953 crore on a networth of Rs 5,000 crore.

    “RPL has demonstrated excellent operating performance in current FY 2021-22 amidst COVID-19 and acute coal shortage in the country affecting coal based thermal power plants. Amravati Thermal Power Plant has achieved the Plant Load Factor (PLF) of 74% and Plant Availability Factor (PAF) of 85% upto Q3 in current fiscal and stands out as one of the best thermal power plants in Maharashtra in operating performance,” Rattan said.

    The 1,350 Mw Amravati Thermal Power Plant has been supplying its entire power to Maharashtra distribution company under a 25-year power purchase agreement based on long-term coal linkage from South-Eastern Coalfields Ltd for the entire contracted capacity.

    RattanIndia Power managing director Vibhav Agarwal said the company would prefer various domestic coal auctions by Coal India Ltd over coal imports.

    The company is regularly engaging with lenders of its subsidiary Sinnar Thermal Power Limited for resolution of the project Plant in light of increasing demand of power, the statement said.


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