Renewable companies’ debt binge + Another order on eco-sensitive zones

Why read this story?

Editor's note: Yesterday, The Morning Context carried a story on the 40% increase in the Adani group’s outstanding debt in 2021-22 from the previous financial year. The group’s debt has been the subject of curiosity for a while, including the likes of Subramanian Swamy. My colleague Advait’s piece seeks to understand the reasons behind the recent increase in debt, and who is lending the monies. I will leave you to read it to know more, but I want to address one part here which caught my attention. In the sprawling Adani empire that spans seven listed companies, two accounted for most of the increase in debt. One of these is Adani Green Energy, which houses the group’s forays into renewable energy. It is involved in the manufacture of solar cells and panels, as well as the installation of solar and wind projects. Adani Green Energy’s debt more than doubled in a year to Rs 52,188 crore as on 31 March 2022, and is expected to grow further as the company commissions more projects. The company mirrors a larger national trend: India’s historic …