|
CRISIL has assigned its ‘D’ rating to Shravana Power Projects Pvt Ltd’s (SPPPL’s) term loan facilitiy. The rating reflects delay by SPPPL in servicing its term loan; the delay has been caused by SPPPL’s weak liquidity.
SPPPL is also exposed to risks related to customer concentration in its revenue profile. The company, however, benefits from adequate availability of raw materials.
About the Company
SSSPL was incorporated in 2000. The company was formed by Ms. T Nirmala, Mr. G Devendra Reddy, and Mrs. G Bhagyalatha for setting up a biomass power plant with capacity of 6 megawatts (MW) in Andhra Pradesh. The promoters were, however, unable to complete the project and sold SPPPL to Mr. L G Trinadha Rao and his associates in 2007. The current promoters applied for enhancement of the sanctioned capacity to 7.5 MW in 2008, which was approved. The 7.5 MW biomass power plant is in Thakkellapalli (Andhra Pradesh). The plant was scheduled to commence commercial operations by December 2009, but commenced operations in May 2010. The plant utilises industrial waste as fuel for power generation (75 per cent poultry litter and 25 per cent rice husk). The company sells power to Transmission Corporation of Andhra Pradesh (APTRANSCO) at Rs.4.50 per unit.
|
 |
|
Media Contacts
|
Analytical Contacts
|
CRISIL Rating Desk
|
Mitu Samar
Head, Market Development & Communications
CRISIL Limited
Tel: +91-22- 3342 1838
Email: msamar@crisil.com
Tanuja Abhinandan
Market Development & Communications
CRISIL Limited
Tel: +91-22-3342 1818
Email: tabhinandan@crisil.com
|
Gurpreet S Chhatwal
Director - CRISIL Ratings
Tel: +91-11-4250 5100
Email: gchhatwal@crisil.com
Vasudevan R
Head - CRISIL Ratings
Tel: +91-44-6656 3106
Email: rvasudevan@crisil.com
| Tel: +91-22-3342 3047 / 3342 3064
Email: CRISILratingdesk@crisil.com
|
|
Note:
This rating rationale is transmitted to you for the sole purpose of dissemination through your newspaper / magazine / agency. The rating rationale may be used by you in full or in part without changing the meaning or context thereof but with due credit to CRISIL. However, CRISIL alone has the sole right of distribution of its rationales for consideration or otherwise through any media including websites, portals etc.
|
CRISIL Complexity Levels are assigned to various types of financial instruments. The CRISIL Complexity Levels are available on www.crisil.com/complexity-levels. Investors are advised to refer to the CRISIL Complexity Levels for instruments that they propose to invest in. Investors can also call the CRISIL Helpline at +91 22 3342 3047 / + 91 22 3342 3064 with queries on specific instruments.
|
|
CRISIL is India's leading Ratings, Research, Risk and Policy Advisory company. CRISIL leverages its core strengths of credibility and analytical rigour to deliver opinions and solutions, that help clients mitigate and manage their business and financial risks, make markets function better, and help shape public policy. For more information, visit www.crisil.com.
Disclaimer: A CRISIL rating reflects CRISIL's current opinion on the likelihood of timely payment of the obligations under the rated instrument and does not constitute an audit of the rated entity by CRISIL. CRISIL ratings are based on information provided by the issuer or obtained by CRISIL from sources it considers reliable. CRISIL does not guarantee the completeness or accuracy of the information on which the rating is based. A CRISIL rating is not a recommendation to buy, sell, or hold the rated instrument; it does not comment on the market price or suitability for a particular investor. All CRISIL ratings are under surveillance. Ratings are revised as and when circumstances so warrant. CRISIL is not responsible for any errors and especially states that it has no financial liability whatsoever to the subscribers / users / transmitters / distributors of this product. CRISIL Ratings’ rating criteria are generally available without charge to the public on the CRISIL public web site, www.crisil.com. For the latest rating information on any instrument of any company rated by CRISIL, please contact CRISIL RATING DESK at CRISILratingdesk@crisil.com, or at (+91 22) 3342 3000.
|
|
