India Ratings & Research expects capacity utilisation to improve as power demand is expected to hover between 6-7% during the remaining part of the fiscal despite general slowdown of demand. However, it has maintained a stable-to-negative outlook on the sector for the remaining part of the current fiscal.
In a ratings statement Ind-Ra said the stable-to-negative outlook reflects mounting receivables by state distribution companies (discoms) due to inadequate improvement in operational parameters, uncertainty as exhibited by some discoms to honour existing power purchase agreements and continued dependence on imported coal due to lower domestic production.
Ind-Ra notes that the growth in power demand from main manufacturing hubs like Haryana, Gujarat, Tamil Nadu and Maharashtra, has been lower than all-India power demand growth of 6.7% in April-July 2019 Read More
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