Delhi based RattanIndia Power Limited (RPL) was incorporated in the year 2007 as Sophia Power Company Limited, originally as a part of Indiabulls group. The company changed its name to Indiabulls Power Limited after its listing on NSE as well as BSE in the year 2009. In 2014, subsequent to the group split along with Indiabulls Infrastructure and Power Limited, the company was carved out and renamed as RattanIndia Power Limited. RPL is promoted by Mr. Rajiv Rattan who is one of the co-founders of Indiabulls Group and currently holds the Chairmanship of RattanIndia Group. The company operates Amravati Thermal Power Project, located at Amravati district, Maharashtra with a total power generation capacity of 2,700 MW comprising of two phases of 1,350 MW each. Phase-I of the power plant (270 MW x 5 units) was commissioned in March 2015. Phase-II is abandoned.

­Not Applicable­

­Acuité has considered the standalone business and financial risk profile of RPL to arrive at this rating.

RPL is a power producer based on thermal electricity. The advancing environmental risk emanating from new regulations may adversely impact the cost of generation. Environmental risk is a major issue for thermal power generators as coal-based power generation causes significant environmental damage. While there have been some measures adopted to reduce the carbon emission, the reduction however is not uniform. The risks of regulatory constraints therefore continue to remain high for this industry and additional measures could lead to cost escalation.
On the social front, occupational and workforce health & safety management are of primary importance to this industry given the nature of operations. The policies on responsible procurement and handling of waste is important. Any increase in pollution levels is likely to create social unrest and political pressures. As thermal power plants also generate large amount of employment in local communities and are susceptible to unionization of labour force, managing social welfare of the local community is critical. RPL engages the local community for various services required namely car rentals, regular maintenance of various equipments, manpower supply etc. The company also ensures 100% utilisation of fly ash generated due to burning of coal and utilisation of raw water used in the generation process towards other processes within plant facility.
On the governance front, the company has adopted requirement of Corporate Governance from Provision of Companies Act 2013 and SEBI (LODR) Regulations 2015. The board of directors comprises of professionals having expertise and experience in various filed such as construction, finance, banking, regulatory affairs, administration and management and technical operations of power plants. Hence, diverse board of directors ensures pooling of knowledge and balanced Board. An audit committee, comprising of 3 members has also been constituted by board. The two of them are independent directors and the third is promoter director. The stakeholder’s relationship committee has been constituted to assist the board in safeguarding the interests of and redressing the grievances of the security holders of the company. ?

• Recovery of regulatory receivables within expected tenure to avoid further elongation of working capital cycle
• Deterioration in PAF and PLF levels

The company has an adequate liquidity position, with sufficient net cash accruals against maturing debt obligations.
The adequate liquidity position of the company is supported by the cash flows received from the regulatory receivables, which helped the company to pre-pay their debt. The company generated NCAs of Rs. 454.58 Cr. in FY2024. The net cash accruals are expected to remain in the range of Rs. 350 to 550 Cr. for FY2025 – FY2026. The company is also maintaining DSRA of Rs. 50.00 Cr. The current ratio stood at 1.73 times on March 31, 2024 as against 1.49 times on March 31, 2023. The unencumbered cash and bank balance of the company stood at Rs 23.83 Cr. as on March 31, 2024.

­Not Applicable