Outlook For India's Thermal Power Sector Revised To Stable: ICRA

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICRA Research Report.Our outlook for thermal power segment has been revised to stable from negative, supported by the healthy improvement in thermal plant load factor level in FY23, which is likely to sustain in FY24 and the reduction in dues from state distribution utilities (discoms). The PLF improvement is driven by the strong recovery in electricity demand growth in the country.The all-India thermal PLF level is expected to improve from 58.9% in FY22 to 64.0% in FY23 and further to 65.5% in FY24, led by a healthy demand growth and limited thermal capacity addition. The full-year demand growth for FY23 is estimated at 9.5-10%, which is likely to moderate in FY24, though remaining healthy at 5.5-6.0%.A sustained growth in electricity demand is expected to improve the visibility on signing of new power purchase agreements for the thermal independent power producers. This is evident from the recent medium-term (five-year) PPA tender for 4.5 giga watt issued by PFC Consulting Ltd. This is a positive for thermal IPPs, as lack of PPAs remained one of the major concerns leading to large stressed capacity in the thermal power sector..Click on the attachment to read the full report:.India's Coal Production Set To Reach 850-900 Million Tonne By End Of FY23: CareEdge.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Outlook For India's Thermal Power Sector Revised To Stable: ICRA

The all-India thermal PLF level is expected to improve from 58.9% in FY22 to 64.0% in FY23 and further to 65.5% in FY24.

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