Fitch Ratings reported that Indian wind and solar project-finance transactions performed better in the financial year ending March 2024 (FY24), even though overall power generation slightly missed the one-year P90 forecasts. Portfolio-level generation grew by 4% due to new asset additions, with solar generation rising by 2%, meeting the one-year P90 estimate. Wind generation increased by 8%, a recovery from the 5% shortfall in FY23, although it still fell slightly short of forecasts.
Cash collection for restricted groups improved to about 100 days in FY24, down from around 140 days in the previous year, aided by the government’s Late Payment Surcharge scheme. Collections for wind and solar assets saw improvement due to the clearance of overdue payments by most state distribution companies. The report also noted that sovereign-owned entities and commercial and industrial customers have largely maintained timely payments in recent years.