Rupee slide has created viability risks for nearly half of the solar power capacities under implementation, worth Rs 28,000 crore, by making imported solar modules costlier and pushing up overall project costs, CRISIL Ratings said in a report on Monday.
According to the report, the projects facing viability risks include the 5.5 GW (gigawatt) capacity bid out in the past nine months at tariffs of Rs 2.75 per unit or less. These projects are in the early phase of implementation and unlikely to have bought solar modules, orders for which are typically placed 9-12 months after bids are won.
“Solar modules account for 55-60% of the project cost of a solar plant, which is typically Rs 5 crore per MW.
Today, over 90% of them are imported. Our analysis shows that for every 10% drop in the rupee (value), the cost of setting up a solar power plant increases by Rs 30 lakh per MW, assuming other factors remain unchanged,” CRISIL senior director Subodh Rai said. Read more
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