Heavy capex preventing deleveraging by Indian renewable energy firms: S&P

Rating agency Standard and Poor’s (S&P) said that heavy capital expenditure and weak cash flows is preventing Indian renewable companies from deleveraging, i,e. reducing debt burden.

The multi-decade growth opportunities for renewable energy in India will result in persistently high leverage across the sector.

Abhishek Dangra, Global Ratings analyst, S&P, said "weaker operating performance, delayed receivables collections and high capital expenditure will weigh on credit profiles for Indian renewables. This is despite good industry fundamentals."

Renewables are economically competitive with traditional fuels and benefit from ambitious energy-transition targets in India.

A number of myths persist about Indian renewable projects. For