What is Due Diligence? How you see in context to Power sector ?
Due diligence is a comprehensive appraisal or investigation conducted before entering into a business transaction—such as an investment, acquisition, or partnership—to assess risks, validate information, and ensure informed decision-making. ⚡ Scope of Due Diligence in the Power Sector (India) Due diligence in the power sector is critical due to the complexity of infrastructure, regulatory frameworks, and financial risks. Here's how it applies: 1. Technical Due Diligence Assessment of plant design, technology (e.g., solar PV, wind turbines), and operational efficiency. Evaluation of grid connectivity, transmission infrastructure, and energy output projections. Example: IndiGrid’s technical due diligence for solar and CSP projects 2. Financial Due Diligence Review of project costs, revenue models, tariffs, and financial viability. Analysis of debt structure, equity investments, and re...