Godawari Green: Got-to-Worry?

Abstract

In 2010, Godawari Power and Ispat Limited, through wholly owned subsidiary Godawari Green Energy Limited (ggelindia.com) (“Godawari,” the Project Company), and six other firms were awarded contracts to install concentrating solar power (CSP) plants of the type shown in Fig. 8.1 and to sell electricity at an average price of INR 11,480 (~USD 200) per MWh. The seven projects added up to 470 MW in capacity and involved about USD 1 billion in investments, averaging about USD 2.2 million per MW in capital costs.

…it is too early to brand [CSP] a success or a failure

Jasmeet Khurana, “The Verdict is Still Out,” Sun & Wind Energy, October 2012.

…the CSP projects hang by a thread

Ankur Paliwal, “Sun Block,” Down To Earth Magazine, May 15, 2013.

Appendix

Balance Sheet and Profit and Loss Accounts for Godawari Green Energy Limited for Years Ended March 2011–2013

Godawari Green Energy Limited
Balance sheet as at 31 March
	2011	2012	2013
Equity and liabilities
Shareholders’ funds
Share capital	121500000.00	121500000.00	1081500000.00
Reserves and surplus	1089142437.00	1090440543.00	1090816594.00
	1210642437.00	1211940543.00	2172316594.00
Non-current liabilities
Long-term borrowing	Nil	459942427.00	3220400048.00
Current liabilities
Short-term borrowing	610000000.00	618399595.00	2262417631.00
Other current liabilities	8831048.00	12188899.00	97455265.00
	618831048.00	1090530921.00	2359872896.00
Total	1829473485.00	2302471464.00	7752589538.00
Assets
Non-current assets
Fixed assets
Tangible assets	36746.00	510142874.00	516532151
Capital work in progress including preoperative expenses	19903233.00	865826177.00	7059457734
Long-term loans and advances	Nil	446000.00	546000.00
	19939979.00	1376415051.00	7576535885.00
Current assets
Cash and bank balances	1173534491.00	377799024.00	155276063
Short-term loans and advances	617267252	544876702.00	10443123.00
Other current assets	18731763.00	3380687.00	10334467
	1809533506.00	926056413.00	176053653.00
Total	1829473485.00	2302471464.00	7752589538.00

Godawari Green Energy Limited
Profit and loss account for the year ended March
	2011	2012	2013
Income
Interest on fixed deposits	26378822.09	54468570.00	16508949.00
(TDS on interest: Rs. 2637882)
Expenses
Salary	150000.00	9828692.00	6207340.00
Other expenses		35415099.00	8317214.00
Audit fee	22060.00
Communication	8686.00
Miscellaneous expenses	33191.00
Finance costs	19386617.32	7087048.00	162200.00
Printing and stationery	74893.00
Legal fees	1714250.00
Membership fees	15000.00
Traveling expenses	3863403.00
Depreciation	6154.00	517890.00	1357148.00
Preliminary, project, and preoperative expenses written off	922131.00
Total	26196385.32	52848729.00	16043902.00
Profit before tax	182436.77	1619841.00	465047.00
Provision for tax	40,000	321,734	88,996
Profit after tax	142436.77	1298107.00	376051.00