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Renew Power Private Limited March 02, 2021 Ratings Amount Facilities Rating1 Rating Action (Rs. crore) CARE A+; Stable 471.99 Long Term Bank Facilities (Single A Plus; Outlook: Reaffirmed (Reduced from 518.00) Stable ) CARE A+; Stable / CARE A1+ Long Term / Short Term Bank 1,670.00 (Single A Plus ; Outlook: Reaffirmed Facilities (Reduced from 2,270.00) Stable/ A One Plus ) 2,141.99 (Rs. Two Thousand One Hundred Total Bank Facilities Forty-One Crore and Ninety-Nine Lakhs Only) Non Convertible Debentures - I - - Withdrawn@ CARE A+; Stable Non Convertible Debentures - 200.00 (Single A Plus; Outlook: Reaffirmed II Stable ) Non Convertible Debentures – - - Withdrawn@ III CARE A+; Stable Non Convertible Debentures - 321.00 (Single A Plus; Outlook: Reaffirmed IV Stable ) 521.00 Total Long Term Instruments (Rs. Five Hundred Twenty-One Crore Only) CARE A1+ Commercial Paper 600.00 Reaffirmed (A One Plus ) 600.00 Total Short Term Instruments (Rs. Six Hundred Crore Only) CARE A+ (Is); Stable Issuer Rating -* [Single A Plus (Issuer Rating); Reaffirmed Outlook: Stable ] Details of instruments/facilities in Annexure-1 * The rating is subject to the company maintaining overall gearing not exceeding 1.00x at standalone level (expected level as on 31/03/2021) @CARE has withdrawn the rating assigned to the Non-Convertible Debentures viz. NCD-I (Rs.200.00 crores; ISIN No: INE003S07098 & INE003S07122) and NCD-III (Rs.121 crores; ISIN No: INE003S07197) of Renew Power Private Limited with immediate effect, as the company has fully repaid the amounts under the said NCDs and there is no amount outstanding under the NCDs.

Detailed Rationale & Key Rating Drivers The ratings assigned to the various bank facilities and instruments of Renew Power Private Limited (RPPL) continue to take into account the company’s experienced and resourceful promoters with single largest equity stake held by the Goldman Sachs group (48.62%) along with other key reputed investors including Canada Pension Plan Investment Board (CPPIB; 16.22% stake), Abu Dhabi Investment Authority (ADIA; 15.92% stake) and Jera Power (9.06% stake) and GEF SACEF (3.26% stake), its demonstrated track record of raising significant amounts of equity capital at regular intervals, its experienced and qualified management with a proven track record of successfully setting up and operating wind and solar power projects in , the company’s position as the largest player in the renewable power segment in India with a diversified project portfolio with commissioned capacity of 5.66 GW as on January 2021 having satisfactory operational performance (barring FY21 wherein all wind projects generation levels have been negatively impacted owing to lower wind availability pan-India). The ratings also derive comfort from the long-term revenue visibility arising out of long-term power purchase agreements (PPAs) for operational capacity of the group under various subsidiaries, around 35% of commissioned capacity selling power

1Complete definition of the ratings assigned are available at www.careratings.com and other CARE publications 1 CARE Ratings Limited

Press Release to stronger off-takers and comfortable liquidity profile at both standalone and consolidated levels. The company has strategy to maintain adequate liquidity specifically to meet any contingencies in its operational projects. The ratings are, however, constrained by counterparty credit risks with around 65% of operational capacity tied up under long-term PPAs with various state utilities having relatively moderate to weak financial profile, ongoing regulatory uncertainty for based projects (around 13.74% of aggregate operational capacity), refinancing risk in the near to medium term pertaining to the corporate bonds, various NCDs and bank facilities issued at RPPL and SPV levels, short- to-medium track-record of operations of a significant portion of the operational capacity, regulatory and policy risk, interest rate fluctuation risk and dependence on climatic conditions for power generation. The ratings are also tempered by RPPL’s significant expansion plans which include sizeable under construction/implementation capacity, group’s decision to foray into other allied power businesses including solar module manufacturing, distribution etc. leading to sizeable capital requirement as well as exposure to inherent project implementation and stabilization risks. Some of the risks related to installation of solar and wind capacity are mitigated by the satisfactory track record of raising funds by RPPL, and relatively short execution cycle of setting up projects. However, some of the under-construction pipeline include storage part also which shall implement additional component of batteries which has very limited track record in India so far. Progress of new ventures would remain a key rating monitorable. Rating Sensitivities Positive Factors - Factors that could lead to positive rating action/upgrade:  Significant improvement in capital structure of the company leading to overall gearing ratio of less than 3.0x at consolidated levels via either through fresh equity infusion and/or partial reduction of debt.  Improvement in receivable cycle at a consolidated level with debtor cycle less than 180 days on sustainable basis.

Negative Factors- Factors that could lead to negative rating action/downgrade:  Significantly lower than envisaged CUF/PLF levels for various operational projects on consolidated level leading to deterioration in debt coverage indicators.  Any adverse outcome on PPA renegotiation taken up by the Andhra Pradesh Government including significant reduction in contracted tariff and/or unilateral cancellation of PPAs by AP Discom.  Delay or inability of the company in timely refinancing of NCDs and bonds.  Inability or delay in equity raising as envisaged for meeting requirements of under-implementation projects  Deterioration in capital structure of the company leading to increase in overall gearing ratio above 4x.  Any change in philosophy of the group of maintaining unencumbered cash at the group level at any point of time and change in philosophy of the group for supporting project SPVs.

Detailed description of the key rating drivers Key Rating Strengths Experienced and resourceful promoters, majority shareholding held by strong investors: RPPL is engaged in renewable power generation business, mainly through its wholly-owned/majority-owned SPVs. Mr. Sumant Sinha, Founder & CEO of RPPL is well-qualified and has more than two decades of experience in leadership roles across various organizations. The Goldman Sachs group, through its investment arm, GS Wyvern Holdings Limited (GSH), has been making significant equity investment in RPPL since FY12 and is the single largest shareholder. Subsequently, other reputed investors such as Asian Development Bank (ADB), South Asia Clean Energy Fund (SACEF), Abu Dhabi Investment Authority (ADIA, through its arm Green Rock A 2014 Ltd), JERA Power and Canada Pension Plan Investment Board (CPPIB) have made significant investments and also GSH has participated in further rounds of equity fund raising by the company. In March 2018, CPPIB invested USD 391 million (Rs.2545 crore) making it the second largest shareholder of RPPL after GSH.

One of the largest players in the renewable power segment in India with well-diversified portfolio: The company has expanded its capacity significantly to become one of the largest renewable energy company in India. As on January 2021, RPPL has operational capacity of around 5.66 GW (61% - Wind, 39% - Solar), all of which have tied up under PPA ranging from 10 years to 25 years. In addition, the company has around 4.41 GW of power projects under implementation or in various stages of planning. Post commissioning of currently under implementation capacity of ~4.41 GW, RPPL will have an operational capacity of around 10 GW (51% - Wind, 49% - Solar). Also, in terms of location of the operational projects, the company is diversified with strong presence in 8 states. Also, the company is providing power to a diversified set of off-takers including various state discoms having moderate to weak financial risk profile, though the risk is mitigated to an extent from diversification with no single off-taker having more than 14% share in operational capacity as on January 2021. Further, post commissioning of the entire 4.41 GW pipeline, exposure towards state PPAs is expected to decrease significantly as under construction projects largely have SECI as counterparty.

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Successful track record of commissioning and operating projects in India, wind projects impacted in FY21 owing to low wind availability: Despite a rapid scale up of capacity, the company has been able to complete majority of the projects in a timely manner. As on January 2021, projects having more than 2 years of operational track record stood at around 74.67% (65% as on January 2020) of total operational capacity. Although a significant portion of the capacity has short to medium track record of operations, the operational track record has largely been satisfactory, so far barring in FY21 wherein operational performance for all wind projects have been impacted owing to lower wind availability across all windy states in India. Improvement in wind patterns, going forward, would be a key monitorable.

Long-term revenue visibility for operational capacity: As on January 2021, RPPL has operational projects having aggregate capacity of around 5.66 GW. Majority of the operational capacity is tied up under long-term PPAs ranging between 10 and 25 years, at fixed tariffs, with majority (88%) of the PPAs having tenor of 20-25 years with few projects (12%) having 10-15 years PPA), at fixed tariffs, which provides long-term revenue visibility for majority of the portfolio. For short term PPAs timely renewal / signing of PPAs at a tariff without impacting the consolidated financial risk profile of the company will be crucial.

Moderately comfortable financial risk profile: RPPL has a moderately comfortable financial profile owing to long-term revenue visibility along with adequate liquidity built- up. Overall gearing ratio decreased and stood at 3.50x on consolidated level as on March 31, 2020 (3.76x as on March 31, 2019). Further, at standalone level overall gearing decreased and stood at 0.83x as on March 31, 2020 (1.04x as on March 31, 2019). Primary reasons for decrease in overall gearing is fresh equity infusion of USD 300 million (~Rs.2100 crore) in June 2019. Performance during H1FY21 has been affected negatively on account of lower performance of operational wind projects. A prominent reason for the decline was the unseasonable and sharp reduction in wind speeds in resource-rich states (, , and ), leading to reduction in wind generation in H1FY21 as compared to H1FY20.

Industry Outlook There is great thrust from government for improving the share of renewable power in India’s overall power mix which is reflected from various policy initiatives. There had been muted solar and wind power generation capacity additions during FY19 & FY20 on the back of imposition of safeguard duty on import of solar modules, lack of clarity w.r.to GST rate on solar modules, cancellation of large amount of solar & wind auctions and migration from Feed-in-Tariff (FiT) based model to reverse auction based tariff discovery model in wind sector. However, looking at the already allotted capacity and govt.’s push for achieving targeted capacity of 160 GW by end FY22, capacity additions are likely to improve in next two to three years. Solar projects have relatively lower execution risks, stable long-term revenue visibility with long term off take arrangements at a fixed tariff, minimal O&M requirements, tariffs comparable to conventional power generation, must run status of solar power projects and upward revision in solar RPO achievement targets. While, wind power projects benefit from established technology, improved generation from technological advancements, faster and modular nature of implementation, stable long-term revenue visibility with long term off take arrangements at a fixed tariff, minimal O&M requirements, tariffs comparable to conventional power generation, must run status of wind power projects and favourable amendments in bidding guidelines for IPPs. However, there are concerns like increased difficulties in land acquisition, inadequate grid connectivity on account of poor evacuation infrastructure, relatively lesser track record of technology in Indian conditions, lack of stricter RPO enforcement by the state regulators, backing down of the projects by few state Discoms, very high dependence on imported solar cells and modules, weak credit profile of WTG manufacturers, regulatory haze in terms of renegotiation of tariff in concluded PPAs and cancellation of concluded auctions, weak financial risk profile of Discoms with significant delays in payment by few state Discoms, increased difficulties in debt tie-up and inherent risk of variation in wind patterns. Overall, positive and negative developments in the sector counterbalance each other, thereby resulting in a stable outlook. Going forward key monitorables would be prices of solar modules, performance of the modules in Indian conditions, developments in claim of off-takers for renegotiation of PPAs, modalities to compensate under change in law for safeguard duty, payment pattern of off-takers, imposition of any anti-dumping duty by India to safeguard domestic solar module manufacturers, capacity additions of rooftop solar, financial health of WTG manufacturers and regulatory stance.

Key Rating Weaknesses Counter party credit risks, regulatory uncertainty in the state of AP for all the wind and solar power projects selling power to AP Discoms: Energy Department, Government of AP, vide an order dated July 1, 2019, formed a High-Level Negotiation Committee (HLNC) to negotiate and bring down the cost in all high-priced wind and solar power purchase agreements. As per the order, HLNC had to submit a report to the state government within 45 days from the order. Post this order, on July 12, 2019, AP

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Press Release discoms sent letter to all wind and solar power projects operational in AP to revise tariff to Rs.2.43/unit for wind power plants and Rs.2.44/unit for solar power plants. The AP matter resolution is still pending due to delay in court hearings owing to Covid-19 pandemic. AP Discom has cleared invoices till March 2020, though these payments have been released at interim tariff of Rs.2.43/kWh (wind projects) and Rs.2.44/kWh (solar projects) in-line with AP High Court order. There has been a build-up of debtors for RPPL and the debtor position is expected to remain elongated till the time the tariff renegotiation situation is fully resolved. Given the regulatory uncertainties, payment pattern of AP discom is expected to remain erratic till the tariff related issues are resolved. Total outstanding receivables saw an increase from Rs.1923.30 crore as on March 31, 2019 (operational capacity of 4.30 GW) to Rs.2607.10 crore as on March 31, 2020 (operational capacity of 5.45 GW) partly due to erratic payment pattern of state discoms and partly due to increase in operational capacity. The same have further increased to around Rs.3024.44 crore as on December 31, 2020 primarily due to delays from state discoms including AP, Maharashtra, MP and . Since the company’s SPVs are selling a significant portion of power to the state distribution utilities having moderate to weak financial risk profile, it is exposed to the credit risk associated with exposure to state distribution utilities. However, the risk is mitigated to an extent due to diversification in terms of off-takers. Additionally, significant amount of under implementation capacity have PPAs with relatively stronger counterparties (SECI, NTPC and GUVNL) which will lead to increase in overall exposure from currently around 35% to more than 60% of operational capacities to such counterparties where payment track records have been relatively better. Going forward, company plans to increase participation in tenders having relatively stronger counterparties (SECI, NTPC, GUVNL etc.). Nevertheless, timely receipt of payments from the various off-takers would be critical from cash flow perspective.

Refinancing risks, though built-up of some track record of successful refinancing: Apart from availing debt in Indian markets, the group has also raised funds through international markets providing diversification in source of funding. However, majority of such fund raising have been done under non-amortizing bullet repayment structures with medium term tenure ranging between 3-7 years exposing the company to refinancing risks. The company has raised aggregate funds of USD 2060 million (~Rs.14,781 crore) under five international bonds which are maturing in phases over the next 7 years leading to requirement of timely refinancing of the same. Additionally, company has some domestic debt in the form of term debt and NCDs aggregating to around Rs. 3077.50 crore which needs to be either refinanced or repaid over a period of next 3 years. However, recently the company has successfully refinanced the Masala Bond which was issued in 2017 and was coming up for redemption in Feb 2022. The company has been able to refinance the same at significantly lower ROI through a 6-year USD bond with partial amortizing structure thereby reducing refinancing risk to some extent. Significant part of the facilities raised as mentioned above are backed by project cash flows and will have a significant tail period which provides some comfort. Nevertheless, timely refinancing of the corporate debt and NCDs along with raising of additional funds without impacting the capital structure of the company will be crucial. Also, since large number of instruments have been raised in international markets, global macroeconomic environment would be key in achieving timely refinancing of the same.

Large expansion plans: As on January, 2021, the company had under implementation capacity of around than 4.41 GW, including recently won Round the clock project under storage tender (which will require installation of storage capacity with an appropriate renewable energy generation capacity). However, the group have an operational capacity of 5.66 GW as on January 2021 which will generate internal cash accruals over the years and thus provides additional flexibility to the group for meeting equity requirements. Nonetheless, the company’s future expansion plans will result in significant requirement of funds, for which the company would be dependent upon fund raising from various investors (existing and new) and capital markets (domestic and international).

Interest rate fluctuation risk, regulatory and policy risk: RPPL is exposed to increase in interest rate going forward, due to fully floating nature of interest on various bank facilities availed by RPPL and its SPVs, though around ~63% of the borrowing (largely from international markets) has fixed rate of interest till maturity ranging between 3-7 years which provides partial comfort. Also, there are concerns in the renewable energy sector in India like delays in land acquisition, imposition of Basic Customs Duty/Safeguard Duty (though the same is pass through in majority of the contracts) on import of solar modules and lack of stricter RPO enforcement by the state regulators which may impact the operational as well as under implementation capacities of the group, going forward. Also, RPPL operates wind and solar power projects under various state and national level schemes with presence across various states in India including AP, MP, Telangana, Gujarat, Karnataka, Maharashtra,

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Rajasthan and Tamil Nadu. This exposes the company to uncertainties and unfavourable changes in policies across various states.

Susceptibility of operating performance to variability in wind patterns and climatic conditions: Wind projects are exposed to inherent risk of weather fluctuations leading to variations in the wind patterns which affect the PLF (as seen in FY21). The company has also forayed in the solar power segment. Achievement of desired solar power generation would be subject to change in climatic conditions, amount of degradation of modules as well as technological risks.

Liquidity: Adequate The group’s liquidity is adequate with unencumbered cash & bank balance of around Rs.2410.80 crore at consolidated levels and around Rs.406.20 crore at standalone level as on December 31, 2020 (exclusive of DSRA and margin money). The company has sanctioned working capital short-term loans aggregating Rs.600 crore out of which Rs.380 crore is unutilized as on December 2020. The company had nil outstanding CPs as on February 2021. GCA for FY21 and FY22 is projected to be around Rs.1568.20 crore and Rs.2597.86 crore as per base case assumptions as against total debt repayment of Rs.1165.00 crore and Rs.386.94 crore during the same period (assuming refinancing wherever bullet repayments are there).

Impact of Covid-19: As per MNRE, all renewable energy projects are granted ‘Must-run’ status and this status of ‘Must-run’ remains unchanged during the period of lockdown also. As electricity is part of essential services, O&M was not impacted. Also, there has not been any major instances of power curtailment by any of the off-takers (barring one or two instances). The renewable projects continued to generate power during the national lockdown period. Some impact on receivable due to COVID has been seen in few state discoms where the discoms are facing liquidity distress. The company had availed moratorium for the period during March-August 2020 (Moratorium I and Moratorium II) in some of its subsidiaries to conserve cash. Additionally, the construction activity was impacted given restrictions in lockdown period leading to minimal capacity additions of in first nine months of FY21 so far. As per directive of MNRE, all renewable energy projects have been given a blanket time extension of 5 (five) months. Also, some projects have been granted extension beyond stipulated 5 months, though the same is on case to case basis.

Analytical approach: Consolidated. List of all the companies getting consolidated under RPPL are shown in Annexure V.

Applicable Criteria CARE’s methodology for Infrastructure sector ratings Criteria on assigning Outlook and Credit Watch to Credit Ratings Rating Methodology: Solar Power Projects Rating Methodology: Wind Power Projects CARE’s methodology for private power producers Financial Ratios – Non-Financial Sector Liquidity Analysis of Non-Financial Sector Entities CARE’s Policy on Default Recognition CARE’s Policy on Withdrawal CARE’s Policy on Issuer Rating Rating Methodology: Consolidation Criteria for Short Term Instruments

About the Company Renew Power Private Limited (RPPL), founded by Mr. Sumant Sinha in 2011, and is engaged in renewable power generation business (wind and solar power). While the majority of the projects are under special purpose vehicles (SPVs) which are its wholly-owned/majority-owned subsidiaries. In FY12, Goldman Sachs group, through its investment arm, GS Wyvern Holdings Limited (GSH), invested US$ 250 million of equity funds in RPPL. Subsequently, other investors, Asian Development Bank (ADB), South Asia Clean Energy Fund (SACEF), Abu Dhabi Investment Authority (ADIA), Jera Co. Inc (Jera) Canada Pension Plan Investment Board (CPPIB) have made significant investment and also GSH has participated in further rounds of equity fund raising by the company. GSH holds majority stake in the company, while other investors and Mr. Sumant Sinha are minority shareholders. Also, in March 2018, RPPL completed the acquisition of Ostro’s 1.1 GW renewable portfolio (Actis backed renewable energy platform).

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As on January, 2021 with the commissioned renewable power capacity of around 5.66 GW spread over Gujarat, Maharashtra, , , Andhra Pradesh, Telangana and Karnataka states, the company has established itself as one of the largest renewable energy players in India. Also, the company has a large pipeline of under implementation and planned projects in both solar and wind power segments aggregating more than 4.41 GW.

Brief Financials (RPPL - Standalone) (Rs. crore) FY19 (A) FY20 (A) Total operating income 849.40 1313.80 PBILDT 594.60 1035.50 PAT 5.40 -261.90 Overall gearing (times) 1.04 0.83 Interest coverage (times) 1.04 1.19 A: Audited Brief Financials (RPPL - Consolidated) (Rs. crore) FY19 (A) FY20 (A) Total operating income 4782.00 5,275.50 PBILDT 4172.70 4,441.10 PAT 103.00 -502.60 Overall gearing (times) 3.76 3.50 Interest coverage (times) 1.56 1.40 A: Audited

Status of non-cooperation with previous CRA: Not Applicable Any other information: Not Applicable

Rating History for last three years: Please refer Annexure-2 Covenants of rated instrument / facility: Detailed explanation of covenants of the rated instruments/facilities is given in Annexure-3 Complexity level of various instruments rated for this company: Annexure 4

Annexure-1: Details of Instruments/Facilities Size of the Name of the Date of Coupon Maturity Rating assigned along ISIN Issue Instrument Issuance Rate Date with Rating Outlook (Rs. crore) Non-fund-based - LT/ ST- CARE A+; Stable / CARE - - - - 1670.00 BG/LC A1+ March 31, Fund-based - LT-Term Loan - - - 330.00 CARE A+; Stable 2021 December 31, Fund-based - LT-Term Loan - - - 131.99 CARE A+; Stable 2021 Fund-based - LT-Cash Credit - - - - 10.00 CARE A+; Stable Issuer Rating-Issuer Ratings - - - - 0.00 CARE A+ (Is); Stable Debentures-Non Convertible INE003S07098 - - - 0.00 Withdrawn Debentures INE003S07122 Debentures-Non Convertible September 28, September 28, INE003S07155 12.65% 200.00 CARE A+; Stable Debentures 2016 2022 Debentures-Non Convertible August 02, INE003S07189 9.45% July 31, 2025 321.00 CARE A+; Stable Debentures 2017 Debentures-Non Convertible INE003S07197 - - - 0.00 Withdrawn Debentures Commercial Paper- Commercial Paper NA - - - 600.00 CARE A1+ (Standalone)

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Annexure-2: Rating History of last three years Current Ratings Rating history Date(s) & Date(s) & Name of the Type Rating Date(s) & Date(s) & Sr. Amount Rating(s) Rating(s) Instrument/Bank Rating(s) Rating(s) No. Outstanding assigned assigned Facilities assigned in assigned in (Rs. crore) in 2020- in 2018- 2019-2020 2017-2018 2021 2019 CARE 1)CARE A+ (Is); 1)CARE A+ 1)CARE A+ (Is); Issuer Rating-Issuer Issuer A+ (Is); Stable (Is); Stable Stable 1. 0.00 - Ratings rat Stable (27-Feb-20) (18-Feb- (21-Feb-18) 19) 1)CARE A1+ 1)CARE (20-Mar-18) Fund-based - ST- 1)Withdrawn A1+ 2)CARE A1+ 2. Working Capital ST - - - (27-Feb-20) (18-Feb- (21-Feb-18) Demand loan 19) 3)CARE A1+

(04-Jan-18) 1)CARE A1+ 1)CARE (20-Mar-18) A1+ Fund-based - ST- 2)CARE A1+ 3. - - - - - (18-Feb- Term loan (21-Feb-18) 19) 3)CARE A1+

(04-Jan-18) 1)CARE A+; Stable / CARE 1)CARE A+; A1+ Stable / CARE CARE 1)CARE A+; (20-Mar-18) A1+ A+; Stable / 2)CARE A+; (27-Feb-20) Non-fund-based - LT/ Stable / CARE A1+ Stable / CARE 4. LT/ST 1670.00 - 2)CARE A+; ST-BG/LC CARE (18-Feb- A1+ Stable / CARE A1+ 19) (21-Feb-18) A1+ 3)CARE A+; (05-Jul-19) Stable / CARE

A1+ (04-Jan-18) 1)CARE A+; Debentures-Non 1)Withdrawn Stable 1)CARE A+; 5. Convertible LT - - - (27-Feb-20) (18-Feb- Stable Debentures 19) (21-Feb-18)

1)CARE A+; Debentures-Non 1)Withdrawn Stable 1)CARE A+; 6. Convertible LT - - - (27-Feb-20) (18-Feb- Stable Debentures 19) (21-Feb-18)

1)CARE A+; 1)CARE A+; Debentures-Non Stable 1)CARE A+; Stable 7. Convertible LT - - - (18-Feb- Stable (27-Feb-20) Debentures 19) (21-Feb-18)

1)CARE A+; CARE 1)CARE A+; Debentures-Non Stable 1)CARE A+; A+; Stable 8. Convertible LT 200.00 - (18-Feb- Stable Stable (27-Feb-20) Debentures 19) (21-Feb-18)

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Current Ratings Rating history Date(s) & Date(s) & Name of the Type Rating Date(s) & Date(s) & Sr. Amount Rating(s) Rating(s) Instrument/Bank Rating(s) Rating(s) No. Outstanding assigned assigned Facilities assigned in assigned in (Rs. crore) in 2020- in 2018- 2019-2020 2017-2018 2021 2019 1)Withdrawn (24-Nov-17) Fund-based - LT- 9. LT - - - - - 2)CARE A+; Term Loan Stable (08-May-17) 1)CARE A+; 1)CARE A+; CARE 1)CARE A+; Stable Debentures-Non Stable A+; Stable (21-Feb-18) 10. Convertible LT 321.00 - (18-Feb- Stable (27-Feb-20) 2)CARE A+; Debentures 19) Stable

(02-Aug-17) 1)CARE A+; 1)CARE A+; 1)CARE A+; Stable Debentures-Non Stable Stable (21-Feb-18) 11. Convertible LT - - - (18-Feb- (27-Feb-20) 2)CARE A+; Debentures 19) Stable

(24-Nov-17) 1)CARE A1+ 1)CARE A1+ (18-Feb- (20-Mar-18) 19) 2)CARE A1+ 2)CARE Commercial Paper- CARE 1)CARE A1+ (21-Feb-18) A1+ 12. Commercial Paper ST 600.00 A1+ - (27-Feb-20) 3)CARE A1+ (28-Dec- (Standalone) (19-Jan-18) 18) 4)CARE A1+ 3)CARE (04-Jan-18) A1+

(17-May- 18) 1)CARE A+; 1)CARE A+; 1)CARE A+; Debentures-Non Stable Stable Stable 13. Convertible LT - - - (27-Feb-20) (18-Feb- (21-Feb-18) Debentures 19) 1)CARE A+; CARE 1)CARE A+; 1)CARE A+; Stable Fund-based - LT- A+; Stable Stable (20-Mar-18) 14. LT 330.00 - Term Loan Stable (27-Feb-20) (18-Feb- 2)CARE A+; 19) Stable (21-Feb-18) CARE 1)CARE A+; 1)CARE A+; 1)CARE A+; Fund-based - LT- A+; Stable Stable Stable 15. LT 131.99 - Term Loan Stable (27-Feb-20) (18-Feb- (20-Mar-18) 19) 1)CARE A+; Stable 1)Withdrawn Non-fund-based - LT- (18-Feb- 16. LT - - - (27-Feb-20) - Letter of credit 19)

2)CARE A+; Stable

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Current Ratings Rating history Date(s) & Date(s) & Name of the Type Rating Date(s) & Date(s) & Sr. Amount Rating(s) Rating(s) Instrument/Bank Rating(s) Rating(s) No. Outstanding assigned assigned Facilities assigned in assigned in (Rs. crore) in 2020- in 2018- 2019-2020 2017-2018 2021 2019 (03-Jul-18) CARE 1)CARE A+; 1)CARE A+; Fund-based - LT-Cash A+; Stable Stable 17. LT 10.00 - - Credit Stable (27-Feb-20) (18-Feb- 19)

Annexure-3: Detailed explanation of covenants of the rated instrument / facilities Name of the Facility – Term Loan (Rs. 330 Crore) Detailed explanation A. Financial covenants Borrower is required to maintain Debt to Equity Ratio less than 1.0x at standalone level at all the times, so long as the facility or any sum under I. Debt to Equity Ratio is outstanding. Debt to Equity Ratio should not exceed 4:1 at consolidated level at all the times, so long as the facility or any sum under is outstanding.

Name of the Instrument Term Loan (Rs. 131.99 Cr) Detailed explanation (NCD – 200 crore) (NCD – 321 crore) A. Financial covenants  Consolidated Net Debt/ Cons. EBITDA  Not exceeding 7 times  Operating Net Debt/Operating EBITDA  Not exceeding 5.75 times  [Operating Net Debt + Non-project related  Not exceeding 6.50 times corporate debt]/Operating EBITDA  Standalone Net Debt/Standalone Tangible Networth  Not exceeding 3.0 times

Annexure 4: Complexity level of various instruments rated for this company Sr. No. Name of the Instrument Complexity Level 1. Commercial Paper-Commercial Paper (Standalone) Simple 2. Debentures-Non Convertible Debentures Simple 3. Fund-based - LT-Cash Credit Simple 4. Fund-based - LT-Term Loan Simple 5. Issuer Rating-Issuer Ratings Simple 6. Non-fund-based - LT/ ST-BG/LC Simple

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Annexure-V: List of subsidiaries getting consolidated at RPPL level as on March 31, 2020 S.No. Name of Company Shareholding as on 31-Mar-20 1 Abaha Wind Energy Developers Private Limited 100% 2 Abha Sunlight Private Limited 100% 3 Adyah Solar Energy Private Limited 100% 4 Akhilagya Solar Energy Private Limited 100% 5 Auxo Solar Energy Private Limited 100% 6 Auxo Sunlight Private Limited 100% 7 AVP Powerinfra Private Limited 100% 8 Badoni Power Private Limited 100% 9 Bhumi Prakash Private Limited 100% 10 Bidwal Renewable Private Limited 100% 11 Greenyana Sunstream Private Limited 100% 12 Helios Infratech Private Limited 100% 13 Izra Solar Energy Private Limited 100% 14 Kanak Renewables Limited 100% 15 Lexicon Vanijya Private Limited 100% 16 Molagavalli Renewable Private Limited 100% 17 Narmada Wind Energy Private Limited 100% 18 Nokor Bhoomi Private Limited 100% 19 Nokor Solar Energy Private Limited 100% 20 Ostro Alpha Wind Private Limited 100% 21 Ostro Anantapur Private Limited 100% 22 Ostro Andhra Wind Private Limited 100% 23 Ostro AP Wind Private Limited 100% 24 Ostro Bhesada Wind Private Limited 100% 25 Ostro Dakshin Power Private Limited 100% 26 Ostro Dhar Wind Private Limited 100% 27 Ostro Energy Private Limited 100% 28 Ostro Jaisalmer Private Limited 100% 29 Ostro Kannada Power Private Limited 100% 30 Ostro Kutch Wind Private Limited 100% 31 Ostro Madhya Wind Private Limited 100% 32 Ostro Mahawind Power Private Limited 100% 33 Ostro Raj Wind Private Limited 100% 34 Ostro Rann Wind Private Limited 100% 35 Ostro Renewables Private Limited 100% 36 Ostro Urja Wind Private Limited 100% 37 Prathamesh Solarfarms Limited 100% 38 Pugalur Renewable Private Limited 100% 39 Rajat Renewables Limited 100% 40 ReNew Agni Power Private Limited 100% 41 ReNew Americas Inc. 100% 42 ReNew Clean Energy Private Limited 100% 43 ReNew Cleantech Private Limited 100% 44 ReNew Distributed Solar Energy Private Limited 100% 45 ReNew Distributed Solar Power Private Limited 100% 46 ReNew Distributed Solar Services Private Limited 100% 47 ReNew Energy Services Private Limited 100% 48 ReNew Green Energy Private Limited 100% 49 ReNew Green Power Private Limited 100% 50 Renew Green Solutions Private Limited 100% 51 ReNew Mega Green Private Limited 100% 52 ReNew Mega Light Private Limited 100% 53 ReNew Mega Spark Private Limited 100% 54 ReNew Mega Urja Private Limited 100%

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S.No. Name of Company Shareholding as on 31-Mar-20 55 ReNew Power International Limited 100% 56 ReNew Power Services Private Limited 100% 57 ReNew Power Singapore Pte. Ltd. 100% 58 ReNew Saur Shakti Private Limited 100% 59 ReNew Saur Urja Private Limited 100% 60 ReNew Saur Vidyut Private Limited 100% 61 ReNew Services Private Limited 100% 62 ReNew Solar Daylight Energy Private Limited 100% 63 ReNew Solar Energy (Jharkhand Five) Private Limited 100% 64 ReNew Solar Energy (Jharkhand Four) Private Limited 100% 65 ReNew Solar Energy (Jharkhand One) Private Limited 100% 66 ReNew Solar Energy (Karnataka Two) Private Limited 100% 67 ReNew Solar Energy (Karnataka) Private Limited 100% 68 ReNew Solar Energy (Rajasthan) Private Limited 100% 69 ReNew Solar Energy (TN) Private Limited 100% 70 ReNew Solar Energy Private Limited 100% 71 ReNew Solar Power Private Limited 100% 72 ReNew Solar Services Private Limited 100% 73 ReNew Solar Sun Flame Private Limited 100% 74 Renew Solar Urja Private Limited 100% 75 ReNew Sun Ability Private Limited 100% 76 ReNew Sun Bright Private Limited 100% 77 ReNew Sun Energy Private Limited 100% 78 ReNew Sun Flash Private Limited 100% 79 ReNew Sun Power Private Limited 100% 80 ReNew Sun Waves Private Limited 100% 81 Renew Surya Ojas Private Limited 100% 82 ReNew Surya Prakash Private Limited 100% 83 Renew Surya Roshni Private Limited 100% 84 Renew Surya Vihaan Private Limited 100% 85 ReNew Transmission Ventures Private Limited 100% 86 ReNew Vayu Urja Private Limited 100% 87 Renew Vyan Shakti Private Limited 100% 88 Renew Vyoman Energy Private Limited 100% 89 Renew Vyoman Power Private Limited 100% 90 ReNew Wind Energy (AP 3) Private Limited 100% 91 ReNew Wind Energy (AP 4) Private Limited 100% 92 ReNew Wind Energy (AP Five) Private Limited 100% 93 ReNew Wind Energy (AP2) Private Limited 100% 94 ReNew Wind Energy (Budh 3) Private Limited 100% 95 ReNew Wind Energy (Devgarh) Private Limited 100% 96 ReNew Wind Energy (Jadeswar) Private Limited 100% 97 ReNew Wind Energy (Jamb) Private Limited 100% 98 ReNew Wind Energy (Jath Three) Private Limited 100% 99 ReNew Wind Energy (Jath) Limited 100% 100 ReNew Wind Energy (Karnataka 3) Private Limited 100% 101 ReNew Wind Energy (Karnataka 4) Private Limited 100% 102 ReNew Wind Energy (Karnataka Five) Private Limited 100% 103 ReNew Wind Energy (Karnataka Two) Private Limited 100% 104 ReNew Wind Energy (Maharashtra) Private Limited 100% 105 ReNew Wind Energy (MP Four) Private Limited 100% 106 ReNew Wind Energy (MP One) Private Limited 100% 107 ReNew Wind Energy (MP Three) Private Limited 100% 108 ReNew Wind Energy (MP Two) Private Limited 100% 109 ReNew Wind Energy (MP) Private Limited 100%

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S.No. Name of Company Shareholding as on 31-Mar-20 110 ReNew Wind Energy (Orissa) Private Limited 100% 111 ReNew Wind Energy (Rajasthan 2) Private Limited 100% 112 ReNew Wind Energy (Rajasthan 3) Private Limited 100% 113 ReNew Wind Energy (Rajasthan Four) Private Limited 100% 114 ReNew Wind Energy (Rajasthan One) Private Limited 100% 115 ReNew Wind Energy (Rajasthan) Private Limited 100% 116 ReNew Wind Energy (Rajkot) Private Limited 100% 117 ReNew Wind Energy (Shivpur) Private Limited 100% 118 ReNew Wind Energy (Sipla) Private Limited 100% 119 ReNew Wind Energy (TN 2) Private Limited 100% 120 ReNew Wind Energy (TN) Private Limited 100% 121 ReNew Wind Energy (Varekarwadi) Private Limited 100% 122 ReNew Wind Energy (Vaspet 5) Private Limited 100% 123 ReNew Wind Energy (Welturi) Private Limited 100% 124 ReNew Wind Energy Delhi Private Limited 100% 125 Shekhawati Solar Park Private Limited 100% 126 Shruti Power Projects Private Limited 100% 127 Star Solar Power Private Limited 100% 128 Sungold Energy Private Limited 100% 129 Symphony Vyapaar Private Limited 100% 130 Tarun Kiran Bhoomi Private Limited 100% 131 Vivasvat Solar Energy Private Limited 100% 132 Zemira Renewable Energy Limited 100% 133 Zorya Distributed Power Services Private Limited 100% 134 Zorya Solar Energy Private Limited 100% 135 Aalok Solarfarms Limited* 75% 136 Abha Solarfarms Limited* 75% 137 Heramba Renewables Limited* 75% 138 Shreyas Solarfarms Limited* 75% 139 ReNew Wind Energy (AP) Private Limited* 66% 140 ReNew Wind Energy (Karnataka) Private Limited 64% 141 ReNew Akshay Urja Limited^ 56% 142 ReNew Mega Solar Power Private Limited* 51% 143 ReNew Solar Energy (Jharkhand Three) Private Limited* 51% 144 ReNew Solar Energy (Telangana) Private Limited* 51% 145 ReNew Surya Mitra Private Limited$ 1% *-Joint Venture companies, however, the respective joint venture partners have protective rights. Hence, these have been accounted as subsidiaries in the consolidated financials of RPPL. ^ On 25 September 2020, the Group acquired an additional 44% interest in the voting shares of Renew Akshay Urja Limited, increasing its ownership interest to 100%. $ On 04th March, 2020, the Group entered into a transaction with investors to issue 98.61% interest in the voting shares of ReNew Surya Mitra Private Limited, decreasing its ownership interest to 1.39%.

Note on complexity levels of the rated instrument: CARE has classified instruments rated by it on the basis of complexity. This classification is available at www.careratings.com. Investors/market intermediaries/regulators or others are welcome to write to [email protected] for any clarifications.

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Contact us Media Contact Mradul Mishra Contact no. – +91-22-6754 3573 Email ID – [email protected]

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About CARE Ratings: CARE Ratings commenced operations in April 1993 and over two decades, it has established itself as one of the leading credit rating agencies in India. CARE is registered with the Securities and Exchange Board of India (SEBI) and also recognized as an External Credit Assessment Institution (ECAI) by the Reserve Bank of India (RBI). CARE Ratings is proud of its rightful place in the Indian capital market built around investor confidence. CARE Ratings provides the entire spectrum of credit rating that helps the corporates to raise capital for their various requirements and assists the investors to form an informed investment decision based on the credit risk and their own risk-return expectations. Our rating and grading service offerings leverage our domain and analytical expertise backed by the methodologies congruent with the international best practices. Disclaimer CARE’s ratings are opinions on the likelihood of timely payment of the obligations under the rated instrument and are not recommendations to sanction, renew, disburse or recall the concerned bank facilities or to buy, sell or hold any security. CARE’s ratings do not convey suitability or price for the investor. CARE’s ratings do not constitute an audit on the rated entity. CARE has based its ratings/outlooks on information obtained from sources believed by it to be accurate and reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Most entities whose bank facilities/instruments are rated by CARE have paid a credit rating fee, based on the amount and type of bank facilities/instruments. CARE or its subsidiaries/associates may also have other commercial transactions with the entity. In case of partnership/proprietary concerns, the rating /outlook assigned by CARE is, inter-alia, based on the capital deployed by the partners/proprietor and the financial strength of the firm at present. The rating/outlook may undergo change in case of withdrawal of capital or the unsecured loans brought in by the partners/proprietor in addition to the financial performance and other relevant factors. CARE is not responsible for any errors and states that it has no financial liability whatsoever to the users of CARE’s rating. Our ratings do not factor in any rating related trigger clauses as per the terms of the facility/instrument, which may involve acceleration of payments in case of rating downgrades. However, if any such clauses are introduced and if triggered, the ratings may see volatility and sharp downgrades.

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