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 per cent 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.