Press Release

April 22, 2026

THE DURGAPUR PROJECTS LIMITED
Rating Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	3249.82	ACUITE BBB+ \| Stable \| Reaffirmed	-	RBI
Bank Loan Ratings	0.00	25.18	-	ACUITE A2 \| Reaffirmed	RBI
Total Outstanding	0.00	3275.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-

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 reaffirmed its long-term rating to 'ACUITE BBB+' (read as ACUITE triple B plus) and short-term rating to 'ACUITE A2' (read as ACUITE A two) on the bank facilities of Rs.3275 Cr. of The Durgapur Projects Limited (DPL). The outlook remains 'Stable'.

Rationale for Rating

The rating reflects Durgapur Projects Limited’s (DPL) steady business risk profile supported by a moderate increase in operating revenues, assured offtake under a long term power purchase agreement (PPA) with West Bengal State Electricity Distribution Company Limited, and strong ownership support from the Government of West Bengal (GoWB). During the period of FY25, the company reported improvement in capacity utilisation and plant load factor, underpinning increase in revenue. However, operating profitability moderated during FY25 due to a sharp increase in raw material costs, particularly coal procured beyond FSA limits at premium prices and lower procurement from captive mines during the period. Fuel Supply Agreements and captive coal mining operations continue to mitigate offtake risks related to coal procurement, providing partial cost cushioning. The company’s ongoing and proposed capital expenditure plans, beginning FY26, are expected to be completed as per the envisaged timelines and will remain a key monitorable from a leverage and execution perspective. The rating also factors in DPL’s exposure to regulated industry operations in the power generation sector, its working capital intensive business model marked by elevated receivables, and stretched liquidity indicators. These constraints are partly offset by the company’s strategic importance to the state power ecosystem, continued financial and operational support from the Government of West Bengal, and a predictable regulatory framework, which provides medium term revenue recovery visibility.

About the Company

The Durgapur projects limited was incorporated in 1961 by acquiring all the assets and liabilities of Durgapur industries board, under the administrative control of the department of power of the government of West Bengal (GOWB). Further, in December 2017, the GOWB restructured DPL as a 100 per cent undertaking of the state government. DPL was previously involved into multiple activities such as generation, distribution and transmission of power; however, post the restructuring the company is solely into power generation since January 2019. As a part of the restructuring scheme, the business of power transmission activities of DPL have been transferred and vested in West Bengal state electricity transmission company limited and the business of power distribution activities have been transferred and vested in West Bengal state electricity distribution company limited. Both, WBSEDCL and WBSETCL are also wholly owned undertakings of the state government. Presently, DPL has thermal power generation units aggregating to 550 mw and their sole customer is WBSEDCL. Moreover, DPL has 50 MGD water works which caters to the needs of industries and domestic requirements of water in and around Durgapur apart from captive usage which caters to around 80 per cent of power needs in the state of West Bengal. Moreover, DPL has 50 mgd water works which caters to the needs of industries and domestic requirements of water in and around Durgapur apart from captive usage.The Directors Of The Company Are Mr. Santanu Basu, Mr. Lalbahadur Sardar Mr. Debkumar Gupta, Ms. Rita Mukherjie, Mr. Manas Kumar Bhattacharya And Mr. Saibal Kanti Das. The Registered Address Of The Company Is Administrative Building, Durgapur, Burdwan, West Bengal, India, 713201.

Unsupported Rating

ACUITE BB/Stable

Analytical Approach

Acuité has taken a standalone view of the business and financial risk profile of DPL to arrive at the rating. However, the rating factors in the support from the Government of West Bengal (GoWB), through its holding in West Bengal Power Distribution Company Limited (WBPDCL) of which DPL is to become a wholly owned subsidiary. The state government of West Bengal has provided guarantee for the loans taken by DPL from West Bengal Infrastructure Development Finance Corporation Limited (WBIDFCL) and other banks.

Key Rating Drivers

Strengths

Support from the Government of West Bengal

Durgapur Projects Limited (DPL) is a wholly Government-owned company, with the Government of West Bengal holding nearly the entire equity stake in the company (99.99%). Being the power generation licensee by West Bengal Electricity Regulatory Commission (WBERC), DPL is mandated to ensure generation of power from its installed capacity and supply the same to WBSEDCL in the industrial belt of Durgapur in West Bengal. DPL's credit profile is also supported by its access to funds at low cost and its ability to mobilise financial resources from several financial institutions and multilateral development institutions. Acuité believes that DPL, being a strategically important entity for the state of West Bengal, shall continue to benefit from the financial, operational and management support from the state government as and when required. The GoWB has demonstrated financial support by way of loans to DPL on a regular basis. Moreover, the loans of DPL have been guaranteed by GoWB which provides further comfort to the rating. Any changes in the ownership pattern of DPL or any event that impinges GoWB's overall credit profile shall remain a key rating sensitivity.

Cost plus tariff mechanism

The billing of generation charges of DPL are regulated and based on the Annual Revenue Requirement (ARR) under ‘cost-plus’ based tariff mechanism. The regulator, West Bengal Electricity Regulatory Commission (WBERC) allows a post-tax return on equity and other uncontrollable expenses are allowed to be passed through in tariff through Annual Performance Review (APR) process. Acuité believes the ‘cost-plus’ based tariff mechanism will continue to sustain the stable business outlook for the company.

Assured offtake on account of power purchase agreement

There is a long-term power purchase agreement (PPA) between West Bengal State Electricity Distribution Company Limited (WBSEDCL) and Durgapur Projects Limited (DPL) for a period of 25 years, effective from 2019 to 2044. As per the agreement, the entire generating capacity of DPL is allotted to WBSEDCL, which purchases power in accordance with the terms and conditions set forth in the PPA. Acuité believes that the long-term nature of the agreement provides assured offtake visibility for the company. Further, DPL achieved operating income of Rs 1,500.08 crore in FY25 as against Rs 1,387.41 crore in FY24. The company also reported revenues(From sale of electricity and power) of Rs 1,376.29 crore up to March 2026. However, the EBITDA margin declined sharply to 0.71% in FY25 from 37.49% in FY24, primarily due to higher raw material costs, especially coal procured beyond FSA limits at premium prices. The PAT margin improved to 1.99% in FY25 from 0.54% in FY24. Acuité believes that the scale of operations will improve over the medium term, supported by a long-term PPA, targeted improvement in plant load factor, and low offtake risk.

Weaknesses

Below Average Financial Risk Profile

The company’s weak financial risk profile is marked by reducing networth, and weak debt protection metrics. The tangible net worth of the company has been eroded due to continuous accumulated losses. The gearing of the company stood at (3.75) times as on March 31, 2025. The moderate debt protection metrics of the company is marked by Interest Coverage Ratio at 1.62 times as on March 31, 2025 as against 1.56 times as on March 31, 2024 and Debt Service Coverage Ratio at 0.86 times as on March 31, 2025 as against 0.56 times as on March 31, 2024. Acuité believes that the financial risk profile of the company will remain weak in the near to medium term given its high leverage, negative net worth and subdued debt protection metrics.

Working capital intensive nature of operations

The working capital operation of the company is intensive marked by high Gross Current Assets (GCA) of 595 days as on March 31, 2025, as against 550 days as on 31st March 2024 due to debtor and inventory days. The GCA days remain elevated primarily on account of high trade receivables and sizeable other current assets. Other current assets stood at Rs 1,830.20 crore as on March 31, 2025, largely comprising regulatory assets (Rs 1,389.88 crore). The debtor days stood at 130 days in FY25 as against 180 days in FY24. The inventory days stood at 44 days in FY25 as against 99 days in FY24. Against this, the creditor days stood at 171 days in FY25 as against 218 days in FY24. Acuite believes that the working capital operations of the company will remain at similar levels as evident from stretched collection mechanism and over the medium term.

Exposure to regulatory risk and build-up of regulatory receivable

Durgapur Projects Limited (DPL) operates under a regulated cost-plus tariff framework governed by the West Bengal Electricity Regulatory Commission (WBERC). While the framework allows recovery of uncontrollable costs through future tariff adjustments, it has also resulted in a significant build-up of regulatory assets on the company’s balance sheet due to timing mismatches between cost incurrence and tariff recovery. As on March 31, 2025, regulatory assets constituted a substantial portion of other current assets, constraining liquidity and elongating the working capital cycle. The recovery of such regulatory income remains subject to timely regulatory approvals and the financial health of the state distribution utility, thereby impacting cash flow visibility. Acuité believes that the continued accumulation of regulatory receivables and uncertainty around their monetisation timelines remains a key challenge for the company.

Assessment of Adequacy of Credit Enhancement under various scenarios including stress scenarios (applicable for ratings factoring specified support considerations with or without the “CE” suffix)

Acuite factors in the benefits accruing to The Durgapur Projects Limited from its 100% ownership by the Government of West Bengal, along with the regular support received through guarantees, equity infusions, and timely financial assistance, as required.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:

•   Improvement in capacity utilisation and PLF
•   Sustained EBITDA between 35-40%
•   Optimal consumption of captive coal mining to impact EBDITA

Potential triggers (individual or collective) for a downward rating action:

Debt service coverage ratio below unity.
Intensive nature of working capital cycle

Liquidity Position

Stretched

The company’s net cash accruals of Rs 214.20 crore remain insufficient against its debt servicing requirements of Rs 305.77 crore. However, liquidity is supported by the Government of West Bengal through guaranteed borrowings, periodic equity infusion, and the availability of interest free unsecured loans, which provides liquidity comfort in the near to medium term. The state government of West Bengal has given guarantee for the loans borrowed by DPL from WBFIDCL and a few other banks, which provides financial flexibility to the company. The current ratio stood below unity at 1.07 times as on March 31, 2025. GoWB further infused Rs 203.69 crore for the repayment of electricity duty interest and outstanding guarantee fees. The cash and bank balances of the company stood at Rs.108.54 Cr. as on March 31, 2025, as compared to Rs.27.49 Cr. as on March 31, 2024. The company has unsecured loans which are interest free extended by Govt Of West Bengal of Rs. 311.81 Cr. in FY25. The fund based and non fund based limits remained fully utilised at 100% over the six months ended February 2026, with no instances of overdrawal reported. Acuité believes that liquidity, though currently stretched, is supported by state government backing through equity infusion,interest free unsecured loans and guaranteed bank borrowings, with gradual improvement expected from better accruals over the medium term.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	1500.08	1387.41
PAT	Rs. Cr.	29.80	7.48
PAT Margin	(%)	1.99	0.54
Total Debt/Tangible Net Worth	Times	(3.75)	(2.83)
PBDIT/Interest	Times	1.62	1.56

Status of non-cooperation with previous CRA (if applicable)

Not Applicable

Any other information

None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Group And Parent Support: https://www.acuite.in/view-rating-criteria-47.htm
• State Government Ratings : https://www.acuite.in/view-rating-criteria-26.htm

Note on complexity levels of the rated instrument

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.

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
20 Feb 2025	Bank Guarantee (BLR)	Short Term	94.55	ACUITE A2 (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	284.68	ACUITE BBB+ \| Stable (Reaffirmed)
	Cash Credit	Long Term	100.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Term Loan	Long Term	2366.35	ACUITE BBB+ \| Stable (Reaffirmed)
	Cash Credit	Long Term	330.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Term Loan	Long Term	69.42	ACUITE BBB+ \| Stable (Reaffirmed)
	Cash Credit	Long Term	30.00	ACUITE BBB+ \| Stable (Reaffirmed)
24 Nov 2023	Bank Guarantee (BLR)	Short Term	94.55	ACUITE A2 (Reaffirmed)
	Term Loan	Long Term	2606.44	ACUITE BBB+ \| Stable (Reaffirmed)
	Cash Credit	Long Term	200.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Term Loan	Long Term	185.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Term Loan	Long Term	100.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Cash Credit	Long Term	30.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	59.01	ACUITE BBB+ \| Stable (Reaffirmed)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Listing Status	Regulated By	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
The West Bengal State Co-Operative Bank Limited	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	475.00	Simple	ACUITE BBB+ \| Stable \| Reaffirmed
ICICI BANK LIMITED	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	30.00	Simple	ACUITE BBB+ \| Stable \| Reaffirmed
Canara Bank	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	100.00	Simple	ACUITE BBB+ \| Stable \| Reaffirmed
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	343.71	Simple	ACUITE BBB+ \| Stable \| Reaffirmed
Not Applicable	Not avl. / Not appl.	Proposed Short Term Bank Facility	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	25.18	Simple	ACUITE A2 \| Reaffirmed
Canara Bank	Not avl. / Not appl.	Term Loan	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	01 Feb 2041	111.00	Simple	ACUITE BBB+ \| Stable \| Reaffirmed
West Bengal Infrastructure Development Finance Corporation Limited	Not avl. / Not appl.	Term Loan	Unlisted	RBI	30 Jun 2021	Not avl. / Not appl.	30 Jun 2036	2125.95	Simple	ACUITE BBB+ \| Stable \| Reaffirmed
The West Bengal State Co-Operative Bank Limited	Not avl. / Not appl.	Term Loan	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	31 Mar 2027	64.16	Simple	ACUITE BBB+ \| Stable \| Reaffirmed

*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

Sr.No.	Company Name
1	The Durgapur Projects Limited
2	Government of West Bengal

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Prashant Dey
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

List of instruments and names of regulators of the instruments

As required by SEBI Circular (SEBI/HO/DDHS/DDHS-PoD-2/I/4685/2026) dated February 10, 2026, a list of activities or instruments falling under the purview of various Financial Sector Regulators (FSRs), along with the names of respective FSRs, is being disclosed below:
A. Rating Activity:

Sr. No.	Instrument / activity Name	Regulator of the instrument
1	Listed/Proposed to be listed Bonds/Debentures/Preference Shares (all securities)	SEBI
2	Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities)	MCA
3	Listed PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	SEBI
4	Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI)¹	SEBI
5	Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	RBI
6	Listed Commercial Paper and NCDs with original maturity less than 1 year	RBI
7	Unlisted Commercial Paper and NCDs with original maturity less than 1 year	RBI
8	Loan Facilities (Fund/Non-Fund Based) from Bank / NBFCs/ NHB/ FIs ²	RBI
9	External Commercial Borrowings and other similar borrowings	RBI
10	Certificates of Deposit	RBI
11	Fixed Deposits raised by NBFCs, Banks, HFCs, FIs	RBI
12	Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, FIs	MCA
13	Inter Corporate Deposits/Loans extended by Corporates	MCA
14	Borrowing programme ³	-
15	Issuer Ratings ⁴	-
16	Credit Ratings for Capital Protection Oriented Schemes (by Mutal Funds and AIFs)	SEBI
17	Credit quality ratings (CQRs) for Mutual Fund Schemes and Schemes of AIFs	SEBI
18	Listed Security Receipts	SEBI
19	Unlisted Security Receipts	RBI
20	Independent Credit Evaluation (ICE)	RBI
21	Expected Loss Ratings (For Loan Facilities [Fund/Non-Fund based] from Banks/NBFCs/NHB/FIs)	RBI
22	Expected Loss Ratings (Listed / Proposed to be listed Bonds / Debentures / Preference Shares (all securities))	SEBI
23	Expected Loss Ratings (Unlisted / Proposed to be unlisted Bonds/ Debentures / Preference Shares (all securities))	MCA
24	Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) ¹	Investor-side Regulator such as IRDAI, PFRDA ⁵

¹Includes securitisation transactions involving assignee payout, acquirer's payout.

² Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions.
³There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs.
⁴ The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In Press Release(s) subsequent to issuance(s), Acuite shall separately capture the rated quantum details along with names of respective regulators.
⁵ These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026 and accordingly, investor side regulators have been included.

B. Other activities:

Sr. No.	Activity Name	Regulator of the activity
1	Monitoring Agency	SEBI
2	Research activities, incidental to rating, such as research for Economy, Industries and Companies ⁶	Not applicable

⁶ permitted by SEBI vide SEBI Master Circular for CRAs.

Disclosure on instruments / activities and names of regulators:

A list of products/activities or ratings of instruments falling under the purview of various financial sector regulators (FSRs) along with the names of respective FSRs has also been duly disclosed by Acuite on its website. A link to the same has been provided below for ready reference:

https://acuite.in/Activities-and-Regulators.html

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.

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