Some observations of Inox Green subsidiaries
Data from DRHP – Inox Green
Subsidiaries of Inox Green
Now, if we check the SECI wind project status
https://www.seci.co.in/ists/wind
We observe that for Inox Green has the following projects
SECI I – 250 MW won || 200 MW commissioned
SECI II – 250 MW won || 50 MW commissioned (Nani Virani)
SECI III – 200 MW won || 0 MW commissioned
SECI IV – 100 MW won || 0 MW commissioned
Extract from Q2FY23 presentation of Inox Wind.
40 Cr written off as “maximum expsoure” to SECI II projects
Interesting part is there is no mention of this write-off for SECI II projects in the Inox Green Q2FY23 presentation even though the SPVs executing the SECI projects are direct subsidiaries of Inox Green
Now the unknown part for which we need to find out more to validate the investment thesis in Inox Green
What is the project status of SECI III & IV projects?
DRHP of Inox Green
On 30.06.2022, not much work had happened on these projects
If Inox group decides to go ahead and execute these projects (300 MW), they will have to spend approx Rs 1800 Cr and take on debt of at least Rs 1200 Cr.
SECI III tariff = Rs 2.44 Rs/kwh
SECI IV tariff = Rs 2.51 Rs/kwh
At these tariffs, Inox will make losses or make no profits.
Extract from Inox Wind 2022 annual report
It seems Inox group plans to execute these SECI III & IV projects and has even requested for extension of Scheduled Commercial operation Date (SCoD) from Ministry of Power.
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