ICRA revises year-end conventional power sector outlook to ‘Negative’
Ratings agency ICRA has revised the year-end outlook for the Power sector from stable to negative.
It factored the critical factors like the slowdown in energy demand growth, sluggish progress in resolution of stressed thermal assets and less than expected improvement in discom finances, to make this assessment.
According to ICRA Research, the all India electricity demand growth declined to 1.2 per cent in 8M FY2020 on a year-on-year basis against the 6.4 per cent growth reported in 8M FY2019. The demand growth turned negative since August 2019, with demand declining by 12.9 per cent in October 2019 and 4.3 per cent in November 2019 on a year-on-year (YoY) basis.
