Coal availability to power plants likely to improve gradually in Oct: ICRA

Domestic rating agency Icra on Wednesday said it expects the availability of coal to power plants to improve gradually during the current month with expected augmentation in both coal production and dispatch levels.

“We expect the coal availability to improve gradually during October month with expected ramp-up in both coal production & dispatch levels, also given the seasonality in energy demand moderation expected from November month,” Sabyasachi Majumdar, Senior Vice President & Group Head – Corporate Sector Ratings, ICRA said.

As a result, thermal plant availability for majority of IPPs/gencos having long-term PPAs (power purchase agreements) is unlikely to remain below 85 pe cent on annual basis and thus, any adverse impact on the credit profile is unlikely,