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PLF of Power Plant: Is it going to Improve?

<p style="text-align: justify;"><strong><span style="font-size:14px"><span style="font-family:calibri">News:</span></span></strong></p> <p style="text-align: justify;"><span style="font-size:14px"><span style="font-family:calibri">Rating agency Fitch has said that India&#39;s power generators continue to face low and declining capacity utilisation, mainly because financially stressed power-distribution companies are unable to purchase power.<br /> <span style="font-size:10px">Source: ET</span></span></span></p> <p style="text-align: justify;"><strong><span style="font-size:14px"><span style="font-family:calibri">SNP Insights:</span></span></strong></p> <p style="text-align: justify;"><span style="font-size:14px"><span style="font-family:calibri">Power generators is likely to face declining capacity utilization due to poor health of discom. Uday scheme may reduce the debt of distribution companies and may imrpove the financial health. However, untimely tariff revision and billing may continue forcing down the PLF of power plant &nbsp;despite any schemes.<br /> <span style="font-size:10px">Source: SNP Infra Research</span></span></span></p>