Ind-Ra downgrades power sector ratings to negative

KOLKATA: India Ratings and Research (Ind-Ra) has revised its outlook for the power sector outlook to negative for FY21 from stable-to-negative. It has been triggered by muted growth in electricity demand and rising Discom dues due to limited improvement in financial profile of discoms since the launch UDAY.

Weakening consumer sentiments due to declining GDP growth could result in a subdued power demand for FY21; however, profitability is likely to remain unaffected due to the regulated nature of operations for most of the entities.