Meenakshi Energy Limited (MEL), a subsidiary of Vedanta Limited, has received its first standalone credit ratings from CRISIL Ratings, securing a Long-Term Rating of ‘AA- / Watch Developing’ and a Short-Term Rating of ‘A1+ / Watch Developing’ for its proposed bank facilities.
The ratings reflect a strengthened credit profile following the successful refinancing of the company’s first Non-Convertible Debenture (NCD) tranche. The refinancing has improved MEL’s capital structure, lowered refinancing risk, and enhanced overall financial flexibility.
The upgrade is further supported by improved operating performance in FY2026. The company reported an EBITDA of ₹83 crore during the first nine months of the fiscal year, marking a turnaround after achieving full operationalisation of its 1,000 MW thermal power plant in Andhra Pradesh.
The plant became fully operational within two years of acquisition under the Corporate Insolvency Resolution Process in December 2023. With full commercial operations achieved in the first half of FY26, MEL has demonstrated operational stability, prudent financial management, and improved cash flow visibility.
On the commercial front, MEL has signed a five-year Power Purchase Agreement (PPA) with Tamil Nadu Power Distribution Corporation Limited for 300 MW, effective February 2026. The agreement strengthens medium-term revenue certainty and reduces reliance on merchant power markets. The company’s untied capacity, currently exposed to short-term markets, is benefiting from favourable tariff conditions.
To further enhance cost competitiveness, MEL has secured a Fuel Supply Agreement (FSA) with Mahanadi Coalfields Limited at rates significantly below the benchmark cost of imported coal. This arrangement strengthens margin resilience while mitigating fuel supply risks.
MEL operates a four-unit (2×150 MW and 2×350 MW) coal-based thermal power facility at Thamminapatnam in Nellore district, Andhra Pradesh. The plant distinguishes itself through 100% reliance on saline water and adherence to strong environmental and operational governance standards.
The rating milestone strengthens Vedanta’s thermal power portfolio, which has a combined merchant capacity of 4,780 MW across India. Through its power business, Vedanta continues to focus on reliable baseload generation to support India’s growing energy demand while maintaining disciplined financial and operational performance.
