Most of the income is derived from electricity sales to one customer: Uttar Pradesh Power Corporation Ltd. (UPPCL).
As per DRHP, LPGCL is involved in disputes with UPPCL for tariff payment.
Has not been compliant with certain loan agreements in the past resulting in default
Faces fuel supply risks despite having entered into long-term agreements. BEL primarily relies on coal sourced from subsidiaries of Coal India.
Operations carry risk of environmental damage.
Unavailability of appropriate infrastructure could impact the delivery of coal. Heavy dependence on railway infrastructure and road infra for coal.
Tariffs subject to regulatory scrutiny by the Uttar Pradesh Electricity Regulatory Commission (UPERC)
As per DRHP, the final tariff for LPGCL has not been approved by UPERC.
Majority of the land are under lease agreements and inability to renew the agreement or termination of the agreement could impact revenue and operations.
Financial results subject to seasonal variations.
Operations could be affected by strikes or increased wage demands by the employees.