Negative outlook for power sector in new fiscal on slow resolution of stressed assets, coal woes


Negative outlook for power sector in new fiscal on slow resolution of stressed assets, coal woes

The overall outlook for the power sector for the next financial year is negative owing to a host of factors including delays in the resolution of stressed assets and coal supply woes, according to India Ratings and Research.

The Fitch Group arm in a statement on Wednesday said this is despite the anticipation of a 6 per cent to 7 per cent growth in power demand and an improvement in all India coal-based plant load factors (PLFs) to 62 per cent to 63 per cent.

“The stable-to-negative outlook continues to reflect Ind-Ra’s expectation of a slower-than-expected resolution of the stressed capacity, domestic coal availability challenges, and limited appetite of discoms to sign long-term power purchase agreements,” the ratings agency said.

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