Websol Energy System has received a major boost for its expansion plans as the Andhra Pradesh government has approved the company's proposal to establish a substantial solar manufacturing facility. The project involves setting up a 4 GW capacity solar cell and module expansion plant at the Machilipatnam Port-based Special Economic Zone (MPSEZ) in Naidupeta.

Project Details and Scope

The approved facility represents a significant expansion in solar manufacturing capacity for the renewable energy sector. The project details are outlined below:

Strategic Location Advantages

The selection of MPSEZ Naidupeta as the project location offers several strategic benefits for the manufacturing operations. The port-based special economic zone provides enhanced connectivity for raw material imports and finished product exports. The location's proximity to major transportation networks is expected to facilitate efficient logistics operations for the solar manufacturing facility.

Impact on Renewable Energy Sector

This approval represents a substantial addition to India's solar manufacturing infrastructure. The 4 GW capacity expansion will contribute significantly to the country's domestic solar equipment production capabilities. The project aligns with national objectives of reducing dependence on imported solar components and strengthening the domestic renewable energy manufacturing ecosystem.

Government Support and Approval Process

The Andhra Pradesh government's approval demonstrates the state's commitment to promoting renewable energy investments and manufacturing activities. The decision reflects the government's strategy to position the state as a key hub for solar energy infrastructure development and attract significant industrial investments in the clean energy sector.

Websol Energy System Limited has received credit ratings from CRISIL Ratings Limited for its banking facilities, marking a significant development in the company's financial profile. The rating assignment was formally communicated to stakeholders under the regulatory framework of SEBI's disclosure requirements.

Credit Rating Details

CRISIL has assigned a BBB+/Stable rating to the company's credit facilities, covering a total amount of ₹150 crore. The rating applies to two distinct banking arrangements that form the core of the company's credit infrastructure.

The uniform rating across both facilities indicates CRISIL's consistent assessment of the company's creditworthiness and repayment capacity. The BBB+ rating represents an investment-grade assessment, while the Stable outlook suggests that the rating is unlikely to change in the near term.

Regulatory Compliance

The credit rating disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulation mandates listed companies to inform stock exchanges about material events that could impact investor decisions, including credit rating assignments or changes.

Company Secretary and Compliance Officer Raju Sharma signed the formal intimation, ensuring proper documentation and regulatory adherence. The company has also indicated that the detailed rating rationale from CRISIL has been enclosed as an annexure to provide stakeholders with comprehensive information about the assessment criteria and factors considered.

Financial Infrastructure

The rated facilities represent important components of Websol Energy System's financial structure. The cash credit facility of ₹15 crore provides working capital flexibility, while the substantially larger term loan facility of ₹135 crore supports the company's longer-term financing requirements.

This credit rating assignment provides transparency to investors, lenders, and other stakeholders about the company's credit profile as assessed by a recognized rating agency. The BBB+/Stable rating from CRISIL offers an independent evaluation of the company's financial strength and creditworthiness in the capital goods and electrical equipment sector.