Moneycontrol

Budget 2023Budget 2023

PARTNERS

  • Tata AIA Life Insurance
  • Hafele
  • Motilal Oswal
  • SMC Global Securities Limited
  • SBI Life
  • DSP Mutual Fund
Upcoming Event : LeapToUnicorn - mentoring, networking and fundraising for startups. Register now
you are here: HomeNewsBusiness

Tight coal supply, rise in import dependency to put upward pressure on power tariff: ICRA

Tight supply of coal to power plants and expected rise in import of the dry fuel amid high international prices will put upward pressure on electricity tariff, according to an ICRA report. "Given the continued tight domestic coal supply position over the last six-month period, coal import dependency for the power sector is expected to increase moderately in the near-term."

March 31, 2022 / 04:29 PM IST

Tight supply of coal to power plants and expected rise in import of the dry fuel amid high international prices will put upward pressure on electricity tariff, according to an ICRA report.

"Given the continued tight domestic coal supply position over the last six-month period, coal import dependency for the power sector is expected to increase moderately in the near-term."

"It therefore poses a cost headwind for IPPs (merchant & competitively bid based projects with no or limited fuel cost pass-through) and for the distribution utilities ('discoms'), in an elevated international coal price level environment,” Girishkumar Kadam, Senior Vice President & Co-Group Head – Corporate ratings, ICRA, said.

The outlook for thermal generation and distribution segments within the power sector continues to remain negative, he stated.