The gap between the capacity utilisation levels of India’s state-owned and private power plants continues to widen, with the plant load factor (PLF) of state-owned thermal plants rising by three percentage points to 77% in April (y-o-y) even as the PLF of private producers slipped nearly seven percentage points to 55.2%. For a sector plagued by Rs 1.74 lakh crore of stressed assets, this is bad news.
In plain words, the improving performance of state-owned plants has been accompanied by a fall in the debt-repayment capacity of around 40,000 MW of private plants, which face being relegated to the category of non-performing assets (NPAs). Stressed assets funded by the Power Finance Corporation (PFC) — the leading state-owned lender for power projects — tot up to more than Rs 30,000 crore, of which 27% are NPAs, all in the private sector. Significantly, PFC has not received any funding requests for coal-based private projects since 2012. Read More