Meenakshi Energy Secures ‘AA-/Watch Developing’ Rating from CRISIL Ratings

Meenakshi Energy (MEL), a subsidiary of Vedanta, has secured its first-ever standalone Long-Term Rating of ‘AA-/ Watch Developing’ and Short-Term Rating of ‘A1+/ Watch Developing’ from global ratings major CRISIL Ratings for its proposed bank facilities. The rating assigned to Meenakshi Energy reflects a strengthening of the company’s credit profile following the successful refinancing of its first Non-Convertible Debenture (NCD) tranche, which has improved capital structure and reduced refinancing risk.

It is further supported by positive EBITDA performance in FY2026, with INR 83 crore reported in the first nine months, marking a clear turnaround after the company fully operationalised its 1,000 MW thermal power plant Andhra Pradesh, within two years of acquisition (under the Corporate Insolvency Process in December 2023). With full commercial operations achieved in H1 FY26, MEL has demonstrated improved operational stability, disciplined financial management and stronger cash flow visibility.

Operationally, MEL has secured a five-year Power Purchase Agreement (PPA) with Tamil Nadu Power Distribution Corporation for 300 MW effective February 2026, enhancing medium-term revenue visibility and moderating merchant market exposure. Its untied capacity, dependent on short-term markets, is currently witnessing healthy rates.  In parallel, the company has tied up a competitive Fuel Supply Arrangement (FSA) with Mahanadi Coalfields (MCL) at a cost significantly lower than the benchmark cost for imported coal, strengthening margin resilience, and mitigating fuel risk.

MEL operates a four-unit (2x150 MW and 2x350 MW), 1,000 MW coal-based thermal power plant at Thamminapatnam, Nellore District, Andhra Pradesh, distinguished by its 100 percent reliance on saline water and strong environmental and operational governance practices. The standalone rating milestone further reinforces Vedanta Power’s thermal power capacity of 4,780 MW and its commitment to strategic capacity building and reliable baseload power generation to strengthen India’s energy security.