Care Ratings believe electricity generation in FY19 will grow between 6% and 7%. Successful implementation of electrification led by power for all is expected to drive demand for electricity.
Care also expects demand for imported thermal coal to normalize going forward as supply constraints of domestic coal improve over the next 12 months. However, overall demand for thermal coal would continue to remain between 135 million tonnes and 145 million tonnes.
Nevertheless, bringing down AT&C losses would be key to stabilising power sector in India. Achieving 15% AT&C on an all-India basis as stipulated under UDAY scheme would require improvement in revenue collection especially from domestic power consumers who have been electrified under the “SAUBHAGYA” Scheme.
