Moody’s maintains stable outlook for power sector, know the reason

Global rating agency Moody’s has said it expects an overall supportive business environment for the power sector in India and has maintained a stable outlook for the industry. Referring to the recently implemented ‘letter of credit’ mechanism of the Union power ministry, the agency noted that the tariff reforms allowing timely recovery
of costs are seen to be incentivising private investment in the sector.

In its latest ‘Asia-Pacific 2020 outlook’ for the sector, Moody’s also noted that “easing constraints on fuel supply” have also helped the Indian electricity generators. Currently, power plants are sufficiently stocked with coal which can last them for as many as 16 days.