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Stressful Environment for Thermal Power Plant Investors Implicating Tough Time for Power Availability in India

News:

India's thermal plants touched a new low of 59 per cent in capacity utilization in June, a level that experts said will make it difficult for commercial plants to service their debt while utilities that have power purchase agreements with generators could witness an increase in cost of power. 

Source: ET

SNP Insights:

Decrease in demand in past years may restrict the development of thermal power plants in India. Continous decrease in plant load factor is causing a stressful environment for the investors. Discoms are not willing to by power due to their poor financial health. In future it might be decrease more as Renewable energy also claims its share in large proportion.

Source: SNP Infra Research