Moody’s today projected a stable outlook for power sector while its Indian affiliate ICRA said that reforms for the distribution sector under UDAY schemehave seen mixed results.
“Moody’s has a stable outlook on the power sector. However, ICRA believes that the reforms for the Distribution Utilities (DISCOMs) — UDAY (Ujwal DISCOM Assurance Yojana) have seen mixed success,” a Moody’s statement said.
At the 4th Annual Credit Conference in Mumbai, the Moody’s statement said its stable outlook on the power sector reflects that improvement in domestic coal availability is moderating the fuel supply risk. It also said that while distribution utilities have seen an improvement in their liquidity, the extent to which operational efficiency has improved is still unclear.
Moody’s believes that India is taking steps to align its power generation mix towards its nationally determined contribution (NDC) commitments under the Paris accordsigned in December 2015. Read More