India may see low plant load factor at about 62% until 2018-19: Study

MANGALURU: India’s energy sector is facing low capacity utilisation in power generation as plant load factor (PLF) is estimated to remain low at around 62% until 2018-19, noted a recent ASSOCHAM-Crisil joint study.

The ASSOCHAM-Crisil joint study titled ‘Insolvency and Bankruptcy Code: Protecting stakeholders, improving ease of doing business,’ noted that India had made considerable progress in power sector in the past three years which resulted in improved access to electricity, better financial health of discoms and promotion of renewable energy generation.

However, operational performance of discoms remains a concern, besides intensive rural electrification in Uttar Pradesh (UP), Bihar and north-eastern states also remained low.

Highlighting the reforms agenda undertaken by the National Democratic Alliance(NDA) government during the course of past three years, the study noted that majority of reforms initiated by the Centre are in initial and middle stages of implementation i.e. while a number of reforms have been announced, execution of the most remains a work-in-progress.

“While steps taken by Modi government do not create an immediate and strong upside, they improve India’s ability to achieve faster and sustainable growth over medium term,” it said.

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