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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