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ICRA Assigns BBB- (Stable) Rating to Orange Maha Wind Energy Private Limited

Strategic Insights

— 1 min read

Orange Maha Wind Energy Private Limited, a wholly owned subsidiary of Orange Renewable Holdings Pte. Limited, has been assigned a long-term rating of [ICRA]BBB- (Stable) by ICRA Limited. The rating is based on the company's strong parentage and management, as well as the advanced stage of execution of the project. The 100 MW wind power project, located at Khanapur, Sangli District, Maharashtra, is expected to be commissioned by September 2015. However, the rating is constrained by the under construction status of the project and the offtake risk for the project, which would be determined by the long-term power purchase agreement (PPA).

Key Takeaways:

  • ICRA has assigned a long-term rating of [ICRA]BBB- (Stable) to Orange Maha Wind Energy Private Limited's Rs 533.0 crore term loans and Rs 26.0 crore fund based limits.
  • The rating derives comfort from the company's strong parentage and management, as well as the advanced stage of execution of the project.
  • The project returns are sensitive to the feed-in tariff, and the counter-party credit risk for OMWEPL is high due to the company supplying energy to a single customer.
  • The rating also factors in the high seasonality and possible variance in wind-power density across years.
  • Orange Renewable Holdings Pte. Limited is a wholly owned subsidiary of AT Holding Pte Ltd (ATH), Singapore, which has diverse investments in various industries.
  • The plant consists of 50 WTGs of 2.0 MW each, supplied by Gamesa Wind Turbines Private Limited.
  • The project is expected to be commissioned by September 2015.

Statistics:

  • 100 MW wind power project located at Khanapur, Sangli District, Maharashtra.
  • 50 WTGs of 2.0 MW each, supplied by Gamesa Wind Turbines Private Limited.
  • Project returns sensitive to feed-in tariff.
  • Counter-party credit risk for OMWEPL is high due to single customer supply.
  • Advanced stage of execution with WTGs erected on 13 locations (out of 50).

Sources:

  • ICRA Limited

+ Rating: [ICRA]BBB- (Stable)

+ Date: June 15 (no year mentioned)

  • Orange Renewable Holdings Pte. Limited

+ Investor profile: AT Holding Pte Ltd (ATH), Singapore

  • Maharashtra Electricity Regulatory Commission (MERC)

+ Tariff for wind projects: Rs 5.70 per unit (as per July 2014 order)

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