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PLF Slips as DISCOMs Shy Away to Buy Power

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Power generation units in India are running below capacity as debt-ridden power distribution companies (discoms) shy away from buying more power. The robust capacity addition that the government has been boasting of has actually aggravated the problem as several independent power producers have been forced to scale down output as demand continues to be muted 

Source:- ET

SNP Insight:

Due to poor financial condition, state distribution companies are not willing to buy power, leading to poor PLF of generating stations and hence financial losses. A lot of investment rushed in the generation in past few years resulting into enormous capacity addition, but proper evacuation measures are not yet taken in order to provide electricity to the needful consumers. The present scenario contradicts to the target of providing cheap  24*7 Power to all by 2019.

Source:- SNP Infra Research