Corporate

Thermal power capacity addition to fall by 60% in 5 years: report

Capacity addition in thermal power generation will slow down over the next five years to less than half the current pace, said ratings agency Crisil in a report. The report, expects only about 35 gigawatt (GW) of new coal-fired power plants to be added to India’s power generation portfolio from FY19-23. In contrast, India added 88 GW of capacity in the preceding five years. Crisil attributes the slowdown in capacity addition largely to two factors In the private sector, large capacities that are under construction are stuck because of the financial muddles that promoters find themselves in. Second, new project announcements are limited as players with the appetite to add capacity are opting to buy out some of the bankrupt assets that are available at reasonable valuations.

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