GMR Infra elucidates Warora Energy's rating downgrade: Details

On Tuesday, June 4, GMR Infrastructure Ltd. (GIL) said its step-down subsidiary GMR Warora Energy Ltd (GWEL) is pursuing power distribution companies for early recovery of dues to regularise its overdue position with lenders. "Discoms (power distribution companies) have been delaying the payment of normal and regulatory dues to GWEL against energy supplied by GWEL in terms of the power purchase agreements," GIL said in a BSE filing.

Owing to these major accumulation of receivables from discoms (with total receivables exceeding five months of turnover), there is a temporary delay in servicing of debt obligations, it added. The filing noted that although the entire power sector is facing the problem of delayed recovery of dues from discoms, GWEL has been regular in servicing its debt obligations since April 2017, including repayment of quarterly principal instalments which commenced in June 2016.

GWEL is a subsidiary of GMR Energy Ltd (GEL) and a step-down subsidiary of GMR Infrastructure Ltd (GIL). "GWEL is working towards regularising the account at an early date. GWEL is pursuing with DISCOMS for early recovery of dues so that that the overdue position to the lenders can be regularized which we hope to be doing at the earliest," the filing said.

Shares of GMR Infrastructure Ltd. was last trading in BSE at Rs.15.3 as compared to the previous close of Rs. 15.45. The total number of shares traded during the day was 692114 in over 677 trades.