Adani Green stated yesterday night that it has not been impacted by the Covid lockown as its plants, which comes under essential services, were running throughout.
All its solar and wind plants were running at full capacity. It categorically stated that there was no material impact of Covid-19 related disruptions on our profitability of the current operations.
All construction activities were mandatorily suspended during the lock-down period as per Government guidelines. The company said that it is now gearing-up to restart construction activity at various construction sites. The Govt clarified that all PPA counter-parties will accept force-majeure for delays in new plant commissioning due to lockdown and will approve a pass-thru in PPAs. There may also be increase in project costs. extent of which is not readily quantifiable at this stage. However. this will be admissible under change in law. for which the company has already issued required Change in Law notices the PPA counterparties in accordance with relevant clauses under the PPA. The management said it will pursue with the PPA counterparties for determination of impact of Change in Law notices.
It currently has 2.5 GW of operational renewable plants and 3.5 GW of renewable plants under-implementation. These plants are scheduled to be commissioned in a phased manner by FY22.
The company recently divested 50% of stake in operational 2.148 MW operational solar plants for INR 3.707 Cr. The proceeds from the transaction is sufficient to meet the equity requirement for next 24 months.
The market is very happy with this news. The stock, which had closed yesterday at Rs.262.20, opened at Rs.269 and went on to immediately hit the 5% UC and also a new 52-week high at Rs.273.20.