The merger and acquisition activity in the renewable energy space has remained sluggish in the last 12 months, with major players counting on enough capacity available to bid for new projects, India Ratings (Ind-Ra) said in its latest report on the power sector.
Experts believe, going forward, there could be a few deals in patches. However, high interest rates and rupee depreciation have discouraged a major surge in capital market transactions on the debt side, they said.
Ind-Ra said achieving financial closure for new renewable projects with highly competitive tariffs and refinancing of existing loans, too, could emerge as a challenge on account of the low margin for error. Read more