Renewable companies’ debt binge + Another order on eco-sensitive zones
Rising debt levels of Indian renewable energy companies are a cause for concern; the Supreme Court has passed an order on the size of buffer zones around sanctuaries.
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 …
More in Chaos
You may also like
Budget 2026: Green targets, grey solutions
India is betting big on carbon capture and coal gas despite global failures. With a new entrant, the race for Shell’s renewable platform in the country is hotting up. Plus, why the solar relief rally might be premature.
JSW Energy’s acquisition engine is working—and that is a worry
Rapid asset purchases are driving generation growth, but rising debt and weaker cash flows are testing investor confidence.
Reliance’s battery plans run into a China wall
Mukesh Ambani’s $10-billion bet faces a harsh reality: much of the clean-energy stack still sits overwhelmingly in Chinese hands.