Small to mid-sized renewable energy companies in India are starting to look like attractive takeover targets as lenders and investors withhold funds, worried by the stiff competition, weak bond markets, low tariffs and high debt besetting the sector. The small companies’ difficulty in raising cash is keeping them away from government power project auctions, restricting their growth and crippling their ability to refinance loans. In a few years, there may be only a few big companies and a few regional firms active in India’s renewable sector. Another problem in India’s renewable sector is debt. Many mid-sized firms have taken debt to fund their equity, adding that many such companies will need financial restructuring or have to put themselves up for auction.

(The Hindu)