India Ratings and Research (Ind-Ra) has reaffirmed its IND A/Stable/IND A1 rating for the ₹1,132 crore bank loan facilities of JSW Renew Energy Ten Ltd (JSWRE10L), reflecting the company’s strong project progress, stable long-term revenue outlook, and continued backing from its parent company, JSW Energy Ltd.
JSWRE10L is developing a 300 MW AC (429 MW DC) solar power project in the Kutch district of Gujarat. The project is backed by a 25-year Power Purchase Agreement (PPA) with Gujarat Urja Vikas Nigam Ltd (GUVNL) at a fixed tariff of ₹2.66 per kWh, providing predictable long-term revenue and reducing market risk.
According to India Ratings, the project has already commissioned 216.7 MW AC of its planned capacity, while the remaining capacity is expected to become operational soon. With most of the construction completed, the project’s execution risk has significantly reduced.
The rating agency also highlighted the strong support provided by JSW Energy, which has committed to funding any project cost overruns and ensuring the required power evacuation infrastructure is available before commercial operations begin. This financial and operational backing strengthens confidence in the successful completion and long-term performance of the project.
Additionally, JSW Energy has undertaken to maintain a Debt Service Reserve (DSR) and, if necessary, restructure project debt to ensure financial stability should power generation fall below expected levels during the initial years of operation.
Despite these positive factors, India Ratings noted that certain risks remain. These include uncertainty related to the project’s operation under temporary General Network Access (GNA), the timeline for securing permanent GNA approval, and the commencement of power supply under the long-term agreement with GUVNL.
Overall, the reaffirmed rating reflects confidence in the project’s financial strength, construction progress, and long-term revenue potential, reinforcing JSW Energy’s position as a key developer in India’s rapidly expanding solar power sector.
