PTC India Financial Services share price gained 6 percent intraday on March 17 after Andhra Pradesh High Court directed a power distribution company (discom) to clear all dues.
The court has directed Danu Wind Parks Pvt Ltd to make payment of all pending and future bills at the rate mentioned in the power purchase agreements with arrears within a period of six weeks from the date of order, as per a statement from PTC India.
The court order will benefit other wind and solar projects in Andhra Pradesh that PFS has funded and regular debt servicing is being done by the borrowers.
Danu Wind Parks developed two wind power projects of 22.8 MW and 25.3 MW in Andhra's Kurnool and Anantpur districts which were commissioned in 2016 and 2018.
PTC India Financial Services had sanctioned a term debt of Rs 117 crore and Rs 169 crore in the instant loan accounts.
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In 2019, the energy department of the state government had constituted a high-level 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 the discoms.
As a result, Danu Wind Parks Pvt Ltd was marked as a stressed asset in the books of PFS due to non-payment of dues.
At 10:20am, PTC India Financial Services was quoting at Rs 17.20, up Rs 0.70, or 4.24 percent, on the BSE.