­Kaleshwaram Irrigation Project Corporation Ltd (KIPCL) was incorporated on August 05, 2016 by the Government of Telangana (GoT) as a 100 percent owned entity to implement the Project. It is a special purpose vehicle (SPV) created to construct the Kaleshwaram lift irrigation project, it is one of the world’s largest lift irrigation project undertaken by Telangana state. The project envisages creating potential to irrigate 18.25 lakh acres of land and stabilize the existing reservoirs which can further irrigate 18.83 lakh acres ayacut. The project is further sub-divided to provide 169 thousand million cubic feet (TMC) Irrigation Water Supply, 10 thousand million cubic feet (TMC) of drinking water to the villages’ en-route, 30 TMC of drinking water to twin cities of Hyderabad & Secunderabad and 16 TMC of water for Industrial use. The entireprojecthasbeen dividedintoseven linkseach of which willconvey water to differentcommand areas through 21 pump houses covering the Project area under the 13 districts in Telangana.

Analytical Approach
To arrive at the rating Acuité has considered the standalone business and financial risk profile of KIPL and also factored in the support by Government of Telangana(GOT) by the way of unconditional and irrecocaable guarentee for timely payment of both interest and principal of the rated debt. The analytical approach has been revised from a Credit Enhancement(CE) to a standalone rating with a notch up based on support from Government of Telangana(GOT). This is to bring analytical approach in line with Acuité's revised rating criteria w.r.t credit enhancement.

Standalone(Unsupported) Rating:
ACUITE B-/Stable

­Acuité has been requesting for data, information and undertakings from the rated entity for conducting surveillance & review of the rating. However, the issuer/borrower failed to submit such information before the due date. Acuité believes that information risk is a critical component in such ratings and noncooperation by the issuer along with an unwillingness to provide information could be a sign of potential deterioration in its overall credit quality. This rating is, therefore, being flagged as “Issuer not-cooperating”, in line with prevailing SEBI regulations and Acuité’s policies.

­The rating is based on information available from sources other than the issuer/borrower (in the absence of information provided by the issuer/borrower). Acuité has endeavoured to gather information about the entity/industry from the public domain. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit rating is based.

­"No information provided by the issuer / available for Acuite to comment upon."

­No information provided by the issuer / available for Acuite to comment upon.

­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’ s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.