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Orient Green Power Company Ltd.

BSE: 533263 Sector: Infrastructure
NSE: GREENPOWER ISIN Code: INE999K01014
BSE 00:00 | 25 Jan 10.73 -0.42
(-3.77%)
OPEN

11.15

HIGH

11.61

LOW

10.64

NSE 00:00 | 25 Jan 10.70 -0.45
(-4.04%)
OPEN

11.15

HIGH

11.65

LOW

10.65

OPEN 11.15
PREVIOUS CLOSE 11.15
VOLUME 2660991
52-Week high 20.45
52-Week low 6.80
P/E
Mkt Cap.(Rs cr) 806
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 11.15
CLOSE 11.15
VOLUME 2660991
52-Week high 20.45
52-Week low 6.80
P/E
Mkt Cap.(Rs cr) 806
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Orient Green Power Company Ltd. (GREENPOWER) - Chairman Speech

Company chairman speech

Dear Shareholders

On behalf of the Board of Directors I am pleased to present to you theOrient Green Power Company Limited Annual Report for the financial year ended March 312022.

Following the large-scale rollout of vaccination programmes and easingof COVID-19 restrictions the global economy is gradually rebounding from the COVID-19crises. In line with this we have seen a broad-based recovery in the economic activities.Central Electricity Authority estimates India's power requirement to grow to reach817 GW by 2030 and in that renewable energy set to play an important role.

The country currently has the fourth highest wind installed capacity inthe world with total installed capacity of 40.13 GW as of March 2022.

The wind power sector is an important component in India's plansto decarbonise its energy sector. Wind power accounted for 40.13 gigawatts (GW) of the 175GW target of installed renewable capacity by 2022 and is expected to be 140 GW of thetotal 450 GW target by 2030. However according to official data India is behind on itsannual wind energy installation target since 2017-18.

The most important challenge for further scaling up renewables in Indiais the poor financial condition of power distribution companies (discoms) most of whichare owned by state governments. Almost all renewable energy is purchased by such discomsresulting in very long and unsustainable payment cycles.

India's wind power sector is struggling to match the growth of thesolar sector since 2017 and it has not been able to achieve its annual capacityinstallation target. The wind power industry and experts highlight that the reason for thestagnation is the shift to reverse auction route in the wind sector lack of financialincentives and difficulties in finding land at windy sites and power evacuationinfrastructure for the projects.

Having one of the largest consumption growths India will have to playa defining role to provide affordable electricity to its citizens while powering theeconomy and accelerating its renewable energy ambitions to reduce its carbon footprintcompany has very bright future in the renewable sector. Your company has been able toreturn to profitability after a long period. The wind generation in this period wasslightly better than in the previous year. Realizations were also improved as the industryrecovered from the covid shutdowns. During the year there have been some positiveregulatory decisions. The Appellate Tribunal for Electricity (APTEL) has set aside theCentral Electricity Regulatory Commission (CERC) order of 2020 which revised the floor andforbearance prices of Solar and Non-Solar Renewable Energy Certificates to Rs. Nil and Rs.1000/- respectively. This restarted REC trading and resulted in revenue of Rs. 48.05crores.

In addition to the above the Andhra Pradesh Electricity RegulatoryCommission (APERC) issued an order in favour of one of the subsidiaries of the companydirecting AP Discom to pay Rs. 31.94 crore . This contributed to Rs. 24.41 crore of incomefor the year. These orders have significant impact on the profitability and cash flowsduring the year.

Efforts for reducing the interest rates have started yielding resultsand the average interest cost of the group came down by 1%. During the year company hasreduced interest payments from Rs.138 Crore to Rs. 121 Crore. The group ended the yearwith no over dues on borrowings and interest. With this interest reduction the company hasa bright future. On behalf of the Board and on my own behalf I place on record myappreciation and gratitude to our customers shareholders employees government andbankers for their continued support and the confidence they have reposed in the Company.

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