The liquidity boost is coming in from government initiatives along with Coal India decision to offer longer term credit to them, says a report
Stress in conventional power generation space and no new private investment in the sector see the two lenders gradually shift to newer areas
Calculations by CEA show that by FY30, non-fossil fuel (solar, wind, biomass, hydro and nuclear)-based installed capacity will be about 64 per cent of the total installed capacity
The report comes at a time when India has opened doors for private investors for commercial coal mining and sale in open market
The environment ministry now in its latest note has said, "In the overall scheme of coal, mine, washery and power plant, the extent of ash content in mined coal remains the same"
Costs unlikely to fall; does not bode well for earnings
India Ratings and Research (Ind-Ra) has revised the power sector outlook to negative for financial year 2020-21 (FY21) from stable
The earlier bidding process which was carried out by NHPC in February, 2019, was cancelled due to lack of response from state discoms
Overall electricity generation in the country from all sources inched up 1.15 per cent till October end of FY20
State-owned thermal power stations recorded the sharpest drop in PLF - to 40.92 per cent in October 2019 from 60.4 per cent in the same month last year
In terms of net new capacity installs to date in 2019-20, 5.7 Gw or two-thirds have been contributed by renewables whereas thermal power witnessed a net addition of 3.1 Gw
CEA data shows a modest 0.92% rise in power produced by Thermal units, compared to a 25% spike by nuclear plants and 15% rise by hydro
Overall power generation in the country was 114.66 billion units in September, as against 119.07 billion units in the same month of 2018
For the full year, the official target is to add 12,186 Mw
Startlingly, no capacity was added by central sector generating utilities in the period under review
Stress in thermal power showed up in the lacklustre capacity addition in the sector in April-August. During this period, only 3790 Mw fresh capacity was added despite the targeted addition of 14956 Mw for 2017-18, states a report by the Central Electricity Authority (CEA).No new thermal power capacity was added for the month of August by the central or state power utilities or even the private developers. This was despite the target of 2720 Mw set for August.Given the sluggish pace of capacity addition, creation of the balance capacity of 11,166 Mw to meet the target looks a challenge.The country met its 12th Plan target in thermal power expansion, achieving 99,209.47 Mw, overshooting the stipulated 88,537 Mw. Beyond the 12th Plan, with the growing appeal of renewable power triggered by tumbling solar tariff and drying up of long-term power purchase agreements (PPAs), the outlook for thermal power capacities looks bleak.A report by ratings firm CRISIL says about 21000 Mw of ...
Falling coal costs and favourable on-grid tariff rates are main cause of the problem