The ₹90,000-crore relief package announced for distribution companies (Discoms) under the Atmanirbhar Bharat Abhiyan would boost the credit profile of generating companies.
This would materially reduce their working capital requirements and consequently the debt taken to fund receivables, according to India Ratings (Ind-Ra).
This move will benefit all power companies including central public sector enterprise (CPSE) gencos and transmission companies (Transcos), independent power producers (IPPs) and renewable (RE) generators. However, the impact could vary across different generating classes and be dependent on the quantum of funds released, the ability of discoms to borrow under the scheme and the timeline over which it is implemented. Ind-Ra does not expect any rating changes on account of the expected reduction in receivables.
