CARE Ratings Report on COVID-19 Impact: Indian Renewable Sector

The global economy has been hit hard by the unexpected outbreak of COVID-19, which has now posed fresh challenges across all geographies and sectors. The renewable energy sector which was already grappling with multiple issues will have to face a new problem of COVID-19. Nevertheless, given government impetus on the renewable sector in the past and continued focus during current uncertain times through necessary regulatory support mechanisms, the sector is expected to wither the crisis to a large extent. However, the journey towards normalcy is expected to be tough given the uncertainty around payment patterns of various state discoms and central nodal agencies as the said outbreak are expected to negatively impact the credit profile of all the discoms. The impact of COVID-19, the mitigants to counter the damage and the possible impact on the credit rating and the outlook is presented in the report.