Extended Coronavirus outbreak can spell hassle for India’s Renewable sector

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The coronavirus outbreak continues to impact India’s highly import dependent solar industry. Supply disruptions of solar panels from China amidst Corona pendamic  for projects  to be Commissioned in India in next few months could lead to delays.

“Supply disruption of solar panels — about 80 per cent capacity globally is controlled by China — for projects commissioned in India in next four to six months could lead to project completion delays and possible invocation of force majeure clauses to avoid penalties by solar developers,” the research firm said on Thursday.

About 3GW of solar projects, worth Rs 16,000 crore, could be at risk of penalties for missing their project completion deadline if the coronavirus impact prolongs and delays supplies of solar panels. Credit profiles of some of the firms implementing these projects could therefore witness some strain.

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