NEW DELHI: In a sign that augurs well for lenders, India’s power generation sector appears to have turned the corner by posting five consecutive months of year-on-year growth till the first week of February after six months of decline due to the Covid-19 pandemic.
The sustained growth in generation the operating environment has stabilised, which will stop the current cash generation cycle of power companies from deteriorating further, Moody’s Investors Service said on Monday as it upgraded the outlook from ‘negative’ to ‘stable’.
“Our expectations of a rebound in India’s real GDP growth to 10.8% in fiscal year 2022, after a sharp contraction in fiscal 2021, further underpins the potential for improving growth in power demand and a more stable picture for the sector,” the agency said.
