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Dripped Plant Load Factor: Unsecuring the Future Course of Investments in the Indian Power Business

News

Power sector recorded the lowest plant load factor in over 15 years with the country's power capacities operating at a mere 65%. 

Source: ET

SNP Insights

The steep fall of 20% witnessed in the plant load factor not only raises a question mark on the sale proposition of the high capacity addition targets achived by the government over the last fiscal, but also clearly indicates the weak financial health of the discoms. Moreover, with such a scenario, the investments into the power generation business especially from the private fellows is projeceted to witness a southbound trend in upcoming days.
 
Source: SNP Infra Research