Coronavirus outbreak: Rs 16,000-crore solar projects face threat

As China battles the deadly coronavirus, business of solar power project developers in India could fall sick. Over 3 GW of solar power projects, awarded in 2018-19, will face delay in commissioning due to lag in procuring panels from China, CRISIL said in its report. 

“Nearly 3 GW of solar projects of worth Rs 16,000 crore could be at risk of penalties for missing their respective scheduled commercial operation date   if the impact of Coronavirus on trade with China prolongs,” CRISIL said. Close to 80 per cent of Indian solar power projects are built in Chinese solar equipment. According to the standard terms of power-purchase deals, non-adherence to completion timelines attracts penalties. 

CRISIL Ratings Director Ankit Hakhu said: “Credit outlook will be sensitive to any significant delay in opening up of trade with China, and project implementation.”