NEW DELHI, Aug. 29, 2022 /PRNewswire/ -- Azure Power
Global Limited (NYSE: AZRE) ("Azure" or the "Company") today
announced the appointment of Mr. Rupesh
Agarwal as its Acting Chief Executive Officer ("CEO"). Mr.
Agarwal takes over from Mr. Harsh Shah who has resigned as CEO with
immediate effect. The Board will consider appointment of a new
permanent CEO in due course.
Mr. Agarwal, who joined the Company earlier this month as Chief
Strategy & Commercial Officer after a period of acting as a
Consultant to the Board, brings over two decades of leadership
experience in asset development and strategy consulting, advising
leading utilities and private equity investors on developing and
managing their cleantech investments. Mr. Agarwal has held
leadership positions at Convergence Energy Services, a Government
of India-owned company,
Lightsource India, BDO, and EY. He was also the founder of AEM
Energi & Motum, a zero-emission electric mobility company,
which pioneered India's first
public electric bus trials. Mr. Agarwal will work closely with the
Company's Board to steer the Company at this critical juncture.
Alan Rosling, Chairman of the
Board, said, "The Board very much regrets Harsh's unexpected
decision to leave the Company after joining only from July 1, 2022. We wish him well for the future. We
are pleased that Rupesh is stepping up to lead the Company at this
time. The Board will be working closely with Rupesh to ensure the
Company's commercial objectives are met as Azure scales its
capacity in the growing Indian market."
FY 2021-22 ANNUAL REPORT
Following its August 12, 2022,
announcement of a delay in the filing of the Company's annual
report on Form 20-F for the financial year ended March 31, 2022 ("FY 2021-22"), the Company
reiterates that it is working in close consultation with its
advisers to close its annual accounts. At this point, the Company
is unable to give a firm timeline for submission of its Form 20-F
for FY 2021-22.
PERFORMANCE UPDATE
While the audit of the financial statements for FY 2021-22 has
not yet been completed, key operational highlights are set forth
below. The information provided in this release is unaudited and
provisional and thus subject to completion of the Company's FY
2021-22 financial year-end audit. Investors are advised, therefore,
that this information may be subject to change.
During FY 2021-22, the Company fully commissioned its 600 MW AC
project with Solar Energy Corporation of India ("SECI") in Rajasthan, the largest
owned and operated single site solar project by any developer in
the country. Subsequent to the end of FY 2021-22, Power Purchase
Agreements ("PPAs") have also been executed with SECI for the
Company's first 150 megawatts ("MWs") solar-wind hybrid project and
the Company's first 120 MWs wind project.
Azure's Plant Load Factor ("PLF"), including the rooftop
portfolio, for FY 2021-22, was 21.6%. Electricity generation,
including the rooftop portfolio, during FY 2021-22 was 4,551
million kWh, an increase of 1,056 million kWh or 30%, over the
fiscal year ended March 31, 2021.
For the projects under RG1 (3.575% Solar Green Bonds maturing in
2026) and RG2 (5.65% Solar Green Bonds maturing in 2024), the PLF
was 18.6% and 21.4%, respectively, and electricity generation was
995 million kWh and 1,367 million kWh, respectively.
WHISTLEBLOWER ALLEGATIONS
The Company received a whistleblower complaint in May 2022 alleging potential procedural
irregularities and misconduct by certain employees at a plant
belonging to one of its subsidiaries. As part of the Company's
review of these allegations, it discovered deviations from safety
and quality norms, and it has implemented mechanisms to
remediate them and in so doing strengthen safety and quality
protocols. Azure's Audit Committee, with the assistance of legal
counsel and forensic accounting support, also identified evidence
of manipulation of project data and information by certain
employees. The Company is implementing immediate remedial measures,
and Azure is initiating disclosure of the findings to the
appropriate authorities.
PUBLIC INTEREST LITIGATIONS
Regarding Azure's Power Purchase Agreements (PPAs) for its 2,333
MWs projects under the manufacturing linked tender of 4,000 MWs,
two Public Interest Litigations ("PILs") have been filed in the
High Court of Andhra Pradesh, challenging various aspects of the
manufacturing tender and seeking to quash the Andhra Pradesh
Regulator's approval for procurement of capacity tied up with SECI.
Further, the tariff adoption for the capacities by the Central
Electricity Regulatory Commission has also been made subject to the
outcome of the PILs. The Company is evaluating the impact of these
PILs
FAVORABLE RESOLUTION OF LEGAL DISPUTES
The Company has received a favorable Award from the Singapore
International Arbitration Centre, which has further been upheld by
the Singapore High Court, in a proceeding initiated by former
Chairman and CEO Mr. Inderpreet Singh
Wadhwa and erstwhile COO Mr. H.S.
Wadhwa in relation to the purchase price of their shares in
Azure Power India Private Limited.
The Company has secured an order from a higher forum in Andhra
Pradesh directing payments of pending and future bills at the PPA
tariff of its 50 MW project in Andhra Pradesh. Further to the rules
(Late Payment Surcharge Rules and related Matters, 2022) issued by
Ministry of Power on June 3, 2022,
the offtaker Southern Power Distribution Company of Andhra Pradesh
Ltd has initiated monthly payments.
Azure recently received all dues from the offtaker Hubli
Electricity Supply Company ("HESCOM") for its 50 MW project in
Karnataka pursuant to recent court orders. In respect of its
40 MW project in Karnataka, HESCOM has initiated payment of the
outstanding receivables.
The Company has received a favorable court order for its 10 MW
project in Bihar whereby the Company's claims on account of a
change in law for operation and maintenance charges have been
allowed.
The Board believes that Azure's underlying business remains
fundamentally strong. The Company continues to operate in line with
its budgets and business plans. Cash flow and collections from
customers continue in the ordinary course. The Company continues to
service all its debt payment obligations, and Azure's liquidity
position remains strong, bolstered by its recent US$250 million rights issue.
Conference Call
The Company will host a conference call to discuss updates on
Wednesday, August 31, 2022, at
9:30 a.m. US Eastern Time. Investors
may access the conference call details by visiting
http://investors.azurepower.com/events-and-presentations.
Participants are encouraged to pre-register for the conference call
by using the link below. Participants who pre-register will be
given a unique PIN to gain immediate access to the call.
Pre-registration may be completed at any time up to the call start
time.
To pre-register, go to:
https://services.choruscall.in/DiamondPassRegistration/register?confirmationNumber=5317820&linkSecurityString=187417ffe8
Members of the public who would like to join, but have not
pre-registered, can do so by dialling +1-866-746-2133 (in the U.S.)
and +91-22-6280-1444 (outside the U.S.). The number should be
dialled at least 10 minutes prior to the start of the conference
call. For those unable to listen to the live broadcast, a podcast
will be available on the website approximately two hours after the
conclusion of the call and can be accessed at
http://investors.azurepower.com/events-and-presentations.
About Azure Power
AZURE is a leading independent sustainable energy solutions
provider and power producer in India on a mission to create value for all
stakeholders through high-performance Renewable Energy assets.
Azure developed India's first
utility scale solar project in 2009, and since then, has grown
rapidly to become a leader in developing and operating large
utility-scale renewable energy projects in the country. Azure also
partners with commercial and industrial customers in their
decarbonization journey by providing comprehensive solutions for
their clean energy needs.
For more information about Azure, visit: www.azurepower.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 21E of the US Securities Exchange Act of
1934, as amended, and the US Private Securities Litigation Reform
Act of 1995, including statements regarding the Company's future
financial and operating guidance, operational and financial results
such as estimates of nominal contracted payments remaining and
portfolio run rate, and the assumptions related to the calculation
of the foregoing metrics. The risks and uncertainties that could
cause the Company's results to differ materially from those
expressed or implied by such forward-looking statements include:
the availability of additional financing on acceptable terms;
changes in the commercial and retail prices of traditional utility
generated electricity; changes in tariffs at which long term PPAs
are entered into; changes in policies and regulations including net
metering and interconnection limits or caps; the availability of
rebates, tax credits and other incentives; curtailment; the
availability of solar panels and other raw materials; its limited
operating history, particularly as a new public company; its
ability to attract and retain its relationships with third parties,
including its solar partners; its ability to meet the covenants in
its debt facilities; meteorological conditions and such other risks
identified in the registration statements and reports that the
Company files with the US Securities and Exchange Commission from
time to time. All forward-looking statements in this press release
are based on information available to the Company as of the date
hereof, and the Company assumes no obligation to update these
forward-looking statements.
For more information:
Investor Contact
ir@azurepower.com
Media Contact
pr@azurepower.com
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