Rating agency CRISIL believes that thermal power capacity additions may halve over the next five years on truant power purchase agreements, erratic coal supplies and rise in renewables.
Capacity addition in power generation is expected to slow down to 35 GW (excluding renewables) between fiscals 2019 and 2023, compared with 88 GW added over the past five years, believes CRISIL.
Consequently, a large number of projects that are at a nascent stage are likely to get postponed until the demand situation improves significantly. Moreover, fresh project announcements are limited as players are opting for the inorganic route for expansion, as a number of assets are available at reasonable valuations. Read More