Ind-Ra: Declining coal production could impact future capacity utilisation

KOLKATA: Average capacity utilisation of thermal power plants dropped to 51% in August 2019 against 55.5% in August last year. The fall was due to a decrease in central, state and private sector capacity utilisations by 700 basis points, 70 basis points and 80 basis points, respectively.

According to a report by rating firm India Ratings, the steep decrease in central sector capacity utilisation was majorly due to decrease in capacity utilisation at NTPC on account of coal shortage at its Talcher plant.