Deja vu in the power sector

From a sector that was deemed one of the most promising as late as a year ago, the electricity sector‘s financials have worsened rapidly. For generators, the immediate reasons have been a quagmire of disrupted fuel linkages, coal and natural gas, land issues, equipment shortages, and lately increased borrowing costs. Capex data from CMIE indicate a sharp increase in abandoned projects. These problems have been progressively aggravated by the worsening financial condition of state electricity distribution utilities (discoms).

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