Vedanta's Meenakshi Energy Secures Top CRISIL Ratings
Meenakshi Energy Ltd received AA- and A1+ ratings from CRISIL for its bank borrowings, indicating strong financial reliability. Following a successful refinancing and full operation of its 1,000-MW thermal plant, the company enhances its financial stability with a new power purchase agreement and a cost-effective coal supply deal.
- Country:
- India
Vedanta Ltd's subsidiary, Meenakshi Energy Ltd (MEL), has achieved an impressive long-term AA- rating and a short-term A1+ rating from CRISIL Ratings for its proposed bank borrowings. These ratings denote a high degree of safety and very low credit risk for the company's financial obligations.
The upgrade in Meenakshi Energy's credit profile results from a successful refinancing of its Non-Convertible Debentures. This development is bolstered by a robust EBITDA performance of Rs 83 crore in FY2026's first nine months. The milestone comes on the back of the operationalisation of its 1,000-MW thermal power plant in Andhra Pradesh, showcasing increased operational stability and cash flow visibility.
Further strengthening its financial future, MEL has secured a five-year power purchase agreement with Tamil Nadu Power Distribution Corporation Limited for 300 MW starting February 2026. The company has also secured a cost-effective coal supply from Mahanadi Coalfields Ltd, enhancing its margin resilience and minimizing fuel risks.
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