With the current estimate of thermal sector stress at over Rs 2.5 lakh crore of investments, the future of the power sector does not look promising. The question is, has UDAY, Modi government’s flagship scheme to alleviate power sector from its distress, worked? This comes in the light of India’s power sector being one of the highly stressed, according to the findings of a recent report.
In the report, India Ratings and Research maintained a generally negative outlook for the power sector in FY20. It also said that due to stretched stress capacity, no new fresh thermal power capacity addition could be expected from the private sector. Also, the AT&C losses have been higher than the set limit in the UDAY scheme. Read More