PFS to recover dues from Danu Wind Parks based on HC order
Premium- Danu Wind Parks Pvt will clear the dues at agreed PPA rate as per the Andhra Pradesh high court's order, PFS said
NEW DELHI : PTC India Financial Services (PFS) is set to recover its pending dues from Danu Wind Parks Pvt Ltd as the Andhra Pradesh high court directed the discom to clear the dues as per the power purchase agreement (PPA) rate.
Shares of the company rose following the news. Around 2.30 pm, PFS shares were trading at ₹17.20 on the BSE, up 4.24% from its previous close.
Danu Wind Parks has developed two wind power projects -- 22.8 MW and 25.3 MW -- in the districts Kurnool and Anantpur, Andhra Pradesh, which were commissioned in the year 2016 and 2018 respectively. PFS had sanctioned term debt of ₹117 crore and ₹169 crore in the instant loan accounts respectively for both the projects.
In 2019, Andhra Pradesh's energy department had constituted a high-level negotiation committee to review, negotiate and bring down the wind and solar energy purchase prices. Subsequently, the discom informed developers about reduction in tariff from the rate mentioned in the PPAs executed earlier between developers and discom.
As a result, Danu Wind Parks was marked as a stressed asset in the books of PFS due to non-payment of dues. The high court on 15 March directed the discom to make payment of all pending and future bills at the rate mentioned in the PPAs. As per the judgement, the discom needs to pay the pending bills within a period of six weeks.
In a statement on Thursday, PFS said: "In line with this order, it is expected that the pending bills/over dues of Danu Wind Parks Pvt Ltd will be cleared at agreed PPA rate. It is also expected to benefit other wind and solar projects in Andhra Pradesh which PFS has funded and regular debt servicing is being done by the borrowers."
The company has of late been in the news after three independent directors on the board of the company -- Kamlesh Vikamsey, Thomas Mathew, and Santosh Nayar -- resigned from the board in January citing serious governance lapses in the company. Following this, former bureaucrat Rakesh Kacker stepped down as an independent director from the board of PTC India citing misgovernance in the subsidiary.
Following the allegations, PFS has been barred by the Securities and Exchange Board of India (SEBI) from holding board meetings till all issues are addressed. The listed non-banking financial company (NBFC) deferred its financial results given the inability to hold a board meeting.
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Mint recently reported that KPMG, tasked with surveying corporate governance issues at PTC India Financial Services, had suggested in January a revamp of the hiring process at one of India’s top power sector lenders.
There were “significant gaps in the hiring and selection process of the director finance and director operations right from the posting of job application", KPMG India Services LLP said in its report.
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