New Delhi, Feb. 24 -- India's renewable energy sector is facing low risk in refinancing its US dollar loans, even though many of these loans require full repayment at maturity, according to a report by Fitch Ratings.

The report says renewable energy companies in India that have US dollar bonds maturing in the next 12-18 months are expected to manage refinancing without major difficulty.

Many of these loans use a "bullet repayment" structure. This means the full principal amount must be repaid at the end of the loan term, instead of being paid gradually over time. While this structure can increase refinancing risk, Fitch believes the overall risk for the sector remains under control.

The agency highlighted three main reasons: stable cas...