Azure Power had won a 4 giga-watt (GW) renewable plus manufacturing plant auction in October 2019 which got converted into a letter of award in June 2020 but still awaits a power purchase agreement as state power distribution companies (discoms) remain financially stressed.
![azure power](http://www.cleanfuture.co.in/wp-content/uploads/2020/10/Screenshot_2020-10-01-Home-Azure-Power.png)
Analysts at HSBC downgraded the rating of Azure Power to ‘hold’ from ‘buy’, as the government increasingly finds it harder to find buyers of solar power.
Azure’s untied capacity is a part of the 12 GW projects awarded in the maiden auction for the manufacturing-linked solar scheme, through which Adani Green Energy will build 8 GW generation capacity and Azure Power will develop 4 GW and supply power at Rs 2.92/unit.
![](http://www.cleanfuture.co.in/wp-content/uploads/2020/10/Screenshot_2020-10-01-Home-Azure-Power-1.png)
As a part of the deal, the two companies will also build 3 GW of solar manufacturing capacities in the country (Adani 2 GW and Azure 1 GW).
To address the issue of solar projects not finding power buyers, the government is planning to bundle higher priced projects (including Adani and Azure’s Rs 2.92/unit bids) with the ones quoting lower tariffs in the recent auctions, and offer them to discoms at an average composite tariff.
Reference- Financial Express, Economic Times, Mercom India