Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
Rating Rationale
Acuite has assigned its long-term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) on the Rs.79.00 Cr. bank facilities of REL MSKVY Solar Project Eight Private Limited (RMSPEPL). The outlook is 'Stable'.
Rationale for rating
The rating reflects RMSPEPL’s long-term revenue visibility supported by a 25-year power purchase agreement with Maharashtra State Electricity Distribution Company Limited (MSEDCL – ACUITE A/Stable/A1), a moderate counterparty, under the PM-KUSUM/MSKVY scheme. The rating is further supported by the experienced promoter profile of Ravindra Energy Limited, timely equity infusion by the sponsor and no funding risk, along with required maintenance of a debt service reserve account equivalent to one quarter of debt servicing, providing liquidity comfort. However, the rating remains constrained by the project’s partial under-construction status and exposure to solar resource variability.
About the Company
RMSPEPL is a special purpose vehicle incorporated on January 28, 2025, and is a wholly owned subsidiary of Ravindra Energy Limited. The company has been set up to implement a distributed, ground mounted solar power project of 22 MW (AC) under the Mukhyamantri Saur Krushi Vahini Yojana (MSKVY) / PM KUSUM scheme in Maharashtra. The project consists of multiple solar installations across eight locations, each connected to agricultural feeders, with power supplied to Maharashtra State Electricity Distribution Company Limited under a long term power purchase agreement. The present directors of the company are Mr. Kallappa Maruti Ghadi and Mr. Sushant Shankar Mungare.
Unsupported Rating
Not Applicable
Analytical Approach
The team has considered the standalone business and financial risk profile of RMSPEPL to arrive at the rating.
Key Rating Drivers
Strengths
Experienced promoter group and established track record
Although RMSPEPL was incorporated in January 2025, it benefits from the established track record and proven execution capabilities of its parent company, Ravindra Energy Limited. Ravindra Energy Limited has been in existence for nearly five decades, with the last ten years into renewable segment. Over this period, the company has successfully developed and commissioned approximately 229 MW of solar projects, while an additional 227 MW of projects are currently under construction.
Long-term off-take agreement with moderate counterparty
The project is supported by a 25-year fixed-tariff Power Purchase Agreement (PPA) with the Maharashtra State Electricity Distribution Company Limited (MSEDCL), ensuring long-term revenue visibility and protection against market price volatility. Under the agreement, tariffs are secured at Rs.3.10 per unit, with an additional Rs.0.25 per unit incentive available during the first three years.
MSEDCL, a state-owned distribution utility and the designated nodal agency under the PM-KUSUM scheme, provides strong counterparty assurance. Payments under the PPA are backed by state-level support mechanisms, offering significant comfort regarding the project’s cash flow stability and credit quality.
Weaknesses
Under construction project status
Although 18 MW out of 22 MW has already been commissioned as of 31 March 2026, timely completion of the balance capacity still depends on maintaining execution continuity up to the scheduled COD of 16 July 2026. Sustained achievement of the P90 CUF of 18.03% remains critical, as any under-performance versus P90 assumptions will directly impact generation levels and the project’s ability to meet its debt-servicing obligations.
Exposure to inherent risks in renewable energy generation
The operations of power plant inherently face risks related to both natural hazards and operational failures. While natural hazards like earthquakes, floods, and landslides can damage structures and disrupt operations, operational risks include equipment malfunctions, such as module or generator failures, as well as potential for accidents or disasters. Further, the performance of the solar plant is highly dependent on favourable climatic conditions including the solar radiation levels which directly impact the Plant Load Factor (PLF).
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Higher than expected generations
Reducing debt obligations leading to improvement in DSCR above 1.4x
Potential triggers (individual or collective) for a downward rating action:
Delay in completing the full project capacity
Lower than expected generations leading to DSCR falling below 1.10x
Liquidity Position
Adequate
The company's adequate liquidity position is expected to support debt servicing (repayments to start from September 2026) in the near-to-medium term on account of generation of adequate cash accruals post completion and commencement of operations. The DSCR is expected to remain above 1.10x until the tenure of the loans. Further, company maintains debt service reserve account (DSRA) for one quarter (principal + interest) obligation. Moreover, the promoters have timely infused required capital in the form of equity and unsecured loans to support the business. However, timely completion of pending work and generation of expected cash accrual shall be key rating monitorable.
Outlook: Stable
Other Factors affecting Rating
None
Particulars
Unit
FY 25 (Actual)
FY 24 (Actual)
Operating Income
Rs. Cr.
0.00
0.00
PAT
Rs. Cr.
0.00
0.00
PAT Margin
(%)
0.00
0.00
Total Debt/Tangible Net Worth
Times
82.14
0.00
PBDIT/Interest
Times
0.00
0.00
Status of non-cooperation with previous CRA (if applicable)
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
Contacts
List of instruments and names of regulators of the instruments
