Finatics 2016

RENEW Green Energy Limited (RENEWGEL) A wholly owned subsidiary

of RENEW
RENEW Green Energy Limited (RENEWGEL) was incorporated on March 30, 2011 to extend
finance and financial services to promote green (renewable and non-conventional) sources of
energy. RENEW GEL during fiscal 2015 supported 173 MW renewable capacity with loan
sanctions of Rs.554.78 crores and disbursed Rs. 71.67 crores. With this, cumulatively, the
sanctions and disbursements till 31.03.2015 stand at Rs. 806.85 crores and Rs. 97.13 crores
respectively. RENEW GEL got the highest credit rating of SMERA AAA (IR) from SMERA Ratings
Private Limited. RENEW GEL has taken steps to increase its business in the Renewable energy
sector and has signed MoU with Indian Renewable Energy Development Agency Ltd. (IREDA) on
May 21, 2014 to jointly finance renewable energy projects.
Its parent body RENEW became the largest NBFC operating in the country based on net worth
(all reserves) as on 31.03.2015. As per DPE Survey, 2015, RENEW is 6th highest profit making PSU
among 290 PSUs. RENEW presently crossed Rs. 5 trillion figure in term loan sanctions to Indian
power sector reflecting its dominant leadership position in the sector, yet it maintains low level
of NPAs.

Vision
To be the leading institution in financing renewable energy and its linkages for sustainable
development.

Mission
To evolve as a leading Financial Institution in the field of Renewable Energy Sector by mobilizing
economical funds, efficient resources and proficient techno-managerial services.
RENEWGEL is very optimistic about 2016. Since Indian economy has recovered a lot in last two
years with fiscal deficit going towards a consolidation path, significantly narrowed current
account deficit, stronger growth and inflation moving down. It also is a great phase to invest in
renewable sector as solar power generation capacity increased by 42% last fiscal. Around 17 out
of 25 solar parks have already been approved in 14 states with capacity of 1000 MW. These all
developments indicates that solar power sector is the right place to invest. Since RENEWGEL is
already a leading institution in financing renewable energy it thought to cash in this opportunity
which solar sector is providing. In this regard it asked solar companies, who were looking for
financing to send their project proposals to RENEWGEL. Out of the project proposals it received
it selected the proposal of Solaris Power Expert Pvt. ltd. After this selection it has send the
proposal to its financial advisory team.

Finatics 2016
Questions:
1. As a financial advisory team you need to analyze the project. Try to find out the
shortcomings in the project
2. Also look for the risk involved in the project if the production is less than 50%. And then
decide the projects viability?
3. As a financial advisory team suggest new ideas which Solaris Power can incorporate in the
project which can improve IRR? [Hint : should be from financial perspective]
4. Also as a financial advisor analyze the project if the sourcing of panels and Technology is
changed?
5. Also analyze whether any other state will be more viable to set this project or not?
[Hint: Analyze from the perspective of tariff rate, power consumption and Land value]

Guidelines:
a)
b)
c)
d)

Each team has to prepare a presentation

Solaris Power project proposal and a excel sheet is attached with this case for help
Teams are free to assume data where they feel its necessary
For Question 4 and 5 we are looking for a different perspective and not financial
calculation

Best of Luck!!